Rick Bowmer, AP
A sign lists a house that is for rent or for sale in Portland, Ore. Only 34 percent of renters choose to buy renter's insurance, according to a recent study.

Renter’s insurance is cheaper than most Americans think, according to a recent study by Princeton Survey Research Associates International.

The over-calculation of costs made by 81 percent of Americans is part of the reason only 34 percent of those who rent have renter's insurance.

“Renter’s insurance is a lot more affordable than most people think,” said Laura Adams, senior insurance analyst at InsuranceQuotes.com. “Most renters don’t realize that their landlord’s insurance usually only covers the structure and not the renter’s belongings. And even in a safe area, renters can fall victim to theft, fire, water damage or another calamity. Fifteen dollars a month is a small price to pay in order to protect your possessions and liability in a lawsuit.”

Sixty percent thought insurance for a year was $250. The other 21 percent guessed more than $1,000 per year. On average, rental insurance is $185 annually.

When choosing renter's insurance, renters should get three or more policy quotes before purchasing, according to InsuranceQuotes. Only 28 percent of those who do have the insurance had that many quotes before choosing the insurance.

EMAIL: [email protected]