Landlords take out insurance policies to protect damages to the home or building you rent. These policies, however, don't protect your personal belongings or provide liability coverage to you. Renters insurance covers damages to your personal property in the event of a natural peril, such as a fire. Additionally, renters insurance covers accidental damages caused by you or if someone is hurt in your home.
Accidental Property Damage
Most basic renters insurance policies provide liability coverage for accidental damage you caused to another person's property. Usually, the other members of your family and pets are covered as well. For example if you're visiting a friend and you accidentally break the bannister on their deck by sitting on it, your renters insurance will pay for the repairs.
If someone visiting your home slips and falls on your wet bathroom floor and requires medical attention because he hit his head, he might decide to sue you to pay for his medical expenses. Fortunately, the renters insurance policy covers this type of situation.