When a tenant clogs the toilet and water floods your building, you will be thankful that you required your tenants to purchase renters insurance.  More important than the amount a tenant can collect on their clothing and furniture is the liability coverage that’s included in any policy.  This will reimburse YOU for damage that they unintentionally cause to your building. Leaving windows open in the summer (and rainwater floods in), too many Christmas lights plugged in to the same outlet (causing a fire), hot grease that bursts into flames on the stovetop, or a number of other examples can let you sleep well at night … knowing that your tenants carry renters insurance.