Do You Need Home Insurance When Renting? 
When renting a home , the home owner needs to have Landlords Insurance to provide coverage for the Dwelling and Premises Liability . The renter needs to buy Renters Insurance to provide coverage for Personal Property & Family Liability . Although both the Landlords policy and the Renters policy are not required by law , it is advisable to be covered in the event of a claim . Many large property management companies and property owners do require tenants to purchase Renters Insurance as a condition to the Rental Agreement ; the reason for this is to avoid lengthy and cumbersome legal issues in the event of a claim attributable to negligence . For a small premium the Renters Insurance provides the tenant with Family Liability coverage which will offer defense and payout damages up to the policy limit . Liability coverage will offer protection for negligence that may lead to a claim -LRB- i.e. accidental fire , smoke , water damage etc. . . -RRB- 