Many consumers overlook renters insurance

Failing to buy renters insurance is one of the top mistakes that consumers can make in a struggling economy, according to the Insurance Information Institute (III).

The organization recently put out a statement noting that consumers often make insurance mistakes like selecting a policy based on price alone, dropping flood insurance or buying the minimum amount of liability coverage for an automobile. Such moves may produce some short-term savings, but are often highly risky in the longer term.

"Consumers should not try to save money by reducing or dropping necessary coverage. This could result in a financial disaster if there is a fire, hurricane, severe winter weather or other catastrophe," said Jeanne Salvatore of the III in a statement.

When it comes to renters insurance, the organization cited a 2006 statistic which found that 43 percent of renters choose to get insurance, compared to 96 percent of homeowners. Such policies are said to cost as little as $200 a year, giving consumers further motivation to protect themselves in the event disaster strikes.

Visit InsureMe.com to find out how to protect yourself as a renter.