Apartment complex landlords buy insurance to cover their buildings and property. This insurance does not cover the tenant’s property. Owners also face a considerable risk of being sued by inhabitants and visitors to their land and structures if someone is injured while on the premises.

When landlords require tenants to have renters' insurance, the apartment owner ensures that the tenants will take responsibility for replacing their lost possessions should a fire occur. The renter may also be responsible for the damage to the apartment, building, or the entire complex should a fire start in the kitchen and spread due to their negligence. Who will cover the lost rent since the space is uninhabitable? The one who left grease burning on the stove or joined too many power cords. Since the renter may not have a place to live if they survive, someone must continue paying the monthly rent and for temporary housing while the structure is rebuilt. Renter's insurance can help with that.

To avoid being sued for the personal actions of the tenant, the landlord will rely on the renter’s liability insurance to pay for the damage or injury the renter may cause to others, including the managers and other tenants.