It provides liability insurance and the tenant's personal property is covered against named perils such as fire, theft, and vandalism.
Many large and medium-sized rental properties include a requirement in their lease that tenants hold renters' insurance.
[4] Multiple companies track renters' insurance in apartment complexes by requiring the tenant to purchase insurance, while maintaining a database of expiration dates, cancellations, and additional information for the property owner/manager to use to ensure coverage for all units.
By using additional interest tracking, management companies and property owners gain a more complete picture of the insurance profile of their properties by receiving notifications in the event there is a change, cancellation, or lapse to an insurance policy held by a tenant.
A limited number of communities require that tenants list them on the policy as additional insured.