Liability Coverage

Another important addition to homeowner policies is umbrella liability coverage. Without it, you could be bankrupted by a lawsuit, whether from someone injured on your property or from someone slandered by your Internet blog.

Such coverage is rare but important for renters who live in large buildings, says Wilson of the Independent Insurance Agents & Brokers of America.

A fire started in one apartment can easily spread to other units, potentially putting a renter on the hook for a big bill for damages. Each $1 million in liability coverage generally costs $100 to $200 per year in premiums, Headley says.