Originally Posted by
nativetexan
When I first got an apartment I got renters insurance and always had it. but it was for my things, not the apartment owner or home owner. If a renter damages something and moves out, how would you get their insurance money? it doesn't work that way.
It's mainly because of the liability protection. For example, a renter's policy will cover the tenant if a guest falls down the stairs and gets hurt. The injured guest will typically go after the deepest pockets, which would be the tenant's insurance company since the tenant's insurance policy would cover it. That protects the landlord from getting sued by the injured guest.
Also, another thing that I remembered: You will want to check with your attorney about the laws in your state, but another way you can limit liability and protect yourself and your properties is to form a separate LLC for each property. That way, if someone pursues legal action against your rental property and they win, they are unable to get a judgement that includes you losing your personal residence.