Just graduated from college and moving out of the house into an apartment? Or maybe you've decided to rent a house. Before unpacking those boxes, make sure the contents are protected.

An article in The Wall Street Journal last year cited a survey by mortgage lender Freddie Mac indicating about 75% of millennials believed renting was more affordable than owning a home or condo. Alarmingly, a 2016 poll conducted for the Insurance Information Institute found that only 41% of renters overall had insurance to protect their belongings.

Many renters assume that the landlord's insurance on the building extends to their personal effects. The reality is that the landlord's insurance only covers the structure, and not the contents inside. Too often, renters don't realize they lack coverage until the damage literally has been done and they suffer significant financial losses unnecessarily.

Renters insurance is relatively inexpensive - about $105 year on average - and gives the policyholder peace of mind in the event of a loss from theft or fire, among other things. It may also provide you with liability protection in the event a lawsuit is filed against you.

To determine how much insurance you'll need, make an itemized list of your stuff -- laptop or tablet, TV, furniture, clothing, etc. -- and the original purchase price. Keep receipts, if possible.

There are several decisions you'll need to make, which will affect the price of your policy premium. Standard renters policies reimburse covered losses at "actual cash value," which factors in depreciation. So if the sofa you bought five years ago gets damaged, you'll get considerably less than what you originally paid. However, most insurers offer a "replacement cost" coverage option, which will reimburse you for the amount it costs to actually replace that damaged couch.

You'll also have the option to choose a "deductible," which is the amount you agree to pay or absorb on a claim before your insurer assumes responsibility for the remaining amount. A higher deductible will lower your premium, but you'll experience a greater out-of-pocket cost in the event of a claim. Finally, most renters policies limit the amount you can recover for jewelry in the event of theft, so you may want to consider purchasing an "endorsement" that provides you with additional coverage for  items such as your engagement ring or designer watch.

Most insurers will provide a discount if you bundle your renters insurance with your auto insurance. For example, our auto insurance customers can save 15% on a renters policy when purchasing both from NJM.