You are moving into a new apartment and you have a lot to do: setting up telephone and cable service, letting people know your new address, deciding how to arrange your living room — the last thing you are thinking about is insurance.

If you live in a condominium or rent an apartment, your landlord or condo association insurance should cover damages to the building — meaning the structure itself. But such a policy only covers their building and not your belongings. That is why you should have renters insurance. Regardless of whether you live in a house, condo, or apartment, replacing your stuff or defending yourself against a liability lawsuit can take a big toll on your bank account.

Basic home insurance policies are generally known by their number.Both the HO-4 (for renters) and HO-6 (for condo owners) policies cover losses to your personal property from 17 types of perils:

• fire or lightning
• windstorm or hail
• explosion
• riot or civil commotion
• aircraft
• vehicles
• smoke
• vandalism or malicious mischief
• theft
• damage by glass or safety-glazing material that is part of a building
• volcanic eruption
• falling objects
• weight of ice, snow, or sleet
• water-related damage from home utilities
• electrical surge damage.

Sounds like quite a lot, does not it? You may notice, however, that floods and earthquakes are not on the list. If you live in an area prone to those, you will need to buy a separate policy or a rider on your renters policy. In some coastal regions, where hurricanes can cause mass destruction, you may also need to buy a separate rider to cover you from windstorm damage.

One thing to look at when you shop for renters insurance is whether the insurance company will be writing "actual cash value" (ACV) or "replacement cost coverage." As the name implies, ACV coverage will pay only for what your property was worth at the time it was damaged or stolen. So, if you bought a television five years ago for $300, it would be worth significantly less today. While you would still need to shell out about $300 for a new one, your insurance company will pay only for what the old one was worth, minus your deductible.

Replacement cost coverage, on the other hand, will pay for what it actually costs to replace the items you lost. Usually, you will have to pay out of your own pocket to replace your damaged items and submit the receipts to the claims adjuster for reimbursement.

In some regions, most insurers write ACV coverage. In others, they will quote you replacement cost coverage by default. Replacement cost coverage will cost you more in premiums, but it will also pay out more if you ever need to file a claim.

Make sure you also let your agent know about any particularly valuable items you have. Jewelry, antiques, and electronics may be covered up to a certain amount, but if you have some items that are unusually expensive, like a diamond ring, you will probably want to purchase a separate rider. If you do not talk to your agent about an expensive item when you buy the policy, you probably will not be able to recover the loss.

If your apartment becomes unlivable due to a fire, burst pipes, or any other reason that is covered by your policy, renters insurance will cover your "additional living expenses." Generally, that means paying for you to live somewhere else, such as another apartment in a similar price range as your original place.

This coverage has a limit of about 30 to 40 percent of the total value of the policy. So, if you are insured for $100,000, your "additional living expenses" limit will be $30,000 or $40,000, depending on your policy terms. Your insurance company will continue to pay while your home is being repaired or rebuilt, or until you permanently relocate. However, sometimes 12 months is the longest an insurance company will continue paying. Other times, you are limited to what the insurance company considers a "reasonable length of time."

Renters insurance has additional benefits that might not immediately come to mind. For example, if you own a waterbed, a waterbed liability provision is standard in most renters policies. If your waterbed bursts and the water ends up in the apartment below yours, renters insurance will cover the damage.

Liability protection is also standard with most renters policies. This means that if someone in your apartment slips and falls, you are covered for any costs, up to your liability limit. And if this person should choose to sue you, you are covered for what they win in a court judgment, up to your policy limit, along with legal expenses.

Just like any other insurance policy, your premium depends on a number of factors: where you live, your deductible, your insurance company, and whether you need any additional coverage or riders. However, if you do not need extra coverage for expensive jewelry or computers, and you shop around, you probably will pay somewhere between $150 and $300 per year, according to the Insurance Information Institute. That will get you about $30,000 to $35,000 worth of coverage for your personal possessions and somewhere between $100,000 and $300,000 worth of liability protection.

Renters and condo policies usually cost less than homeowners policies. While some factors will be out of your control — where you live or what your the building is made of — there are still ways to keep your premium low. Increasing your deductible (the amount you pay before your coverage kicks in) is one strategy. However, be sure that you will be able to afford whatever deductible you choose.

If you are thinking about getting a dog, you may want to think twice. Some insurance companies are skittish about writing policies for owners of certain ferocious breeds: Rottweilers, pit bulls, and Doberman pinschers might make obtaining renters insurance hard, especially if they have bitten people in the past.

Other available discounts will depend on your insurance company — be sure to ask what discounts are available. Most insurers offer a discount for "protective devices," including smoke and fire detectors, burglar alarms, and fire extinguishers.

Some insurers may offer discounts to policyholders who are over age 55 and retired. Others may offer a discount if you buy both an auto and renters policy (called a multiline discount).