When Is Renters Insurance Needed? 
The short answer to this is whenever you enter into a rental or lease agreement for the residence in which you live . Renters insurance provides two primary areas of protection . First , it covers your personal belongings in the event they are lost or damaged in a covered peril such as fire , theft , etc. . Second , through the Liability portion , it protects you in the event you are responsible for the injury of another or damage to another person 's property . 