Renters insurance is necessary if you are renting a home or apartment and want to be sure your valuable possessions are protected from loss, theft or damage, and protects you in the event of liability claims as well.

You are not required to carry renters insurance by law, but a landlord can require renters insurance in your rental agreement in your lease. 

Carrying renters insurance protects you and the landlord by ensuring that no matter what happens on the premises, either your renters insurance or the landlord’s insurance will provide compensation.

As an example, what happens if a neighboring tenant leaves cooking unattended and starts an apartment fire that damages your unit and belongings? 

It’s possible that some combination of the neighbor tenant’s renters insurance, the landlord’s property insurance, and the personal property insurance in your renters policy will come into play to cover the cost of repairs.