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A renters can provide protection for personal property against such perils as fire, theft, and vandalism. You could be held responsible for injury to another person or for damage to another person's property if an incident occurred within your rented residence, or elsewhere. Renters insurance can help protect you in case of a liability lawsuit against you.

A landlord's insurance generally only covers the building where you live not your personal belongings and your liability. Your landlord's policy most likely excludes liability for something that occurs in your rented residence. You could be held responsible for injury to another person or damage to another person's property if an incident occurred within your rented residence, or elsewhere. Without liability coverage, your current and future earnings could be at risk. Renters insurance may also provide legal defense costs.

 
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