Renters policies provide several benefits. A renters policy will provide compensation for many types of loss to your personal property, such as theft, fire, and water damage. Renters policies also include liability protection. This can be especially important because a fire, caused by your negligence, could damage a large number of other rental units and the property contained in them. Additionally, it provides you with loss of use. If your rental is unhabitable due to a covered claim, i.e., fire, you will be compensated for temporary shelter, usually up to 12 months.