Renter's insurance protects a tenant's personal property against such mishaps as fire and theft and also offers liability protection in case someone is injured in the tenant's home. Insurance companies offer policies to help renters offset costs incurred from such instances.
Though the owner of a rental property is liable for the building itself, the owner is not responsible for the tenant's belongings. Even if a renter decides that their possessions are not worth insuring, the liability faced if someone falls in the home and gets hurt is a key factor to consider when deciding whether or not to have renter's insurance. Additionally, if something the tenant does somehow causes damage to an adjoining apartment, the tenant is potentially liable. Renter's insurance provides protection in that instance as well.