What type of insurance provides financial protection to renters against losses in a rental property?

Renters insurance is specifically designed to provide financial protection to individuals who are renting a home or apartment. It covers personal property loss due to theft, fire, or other covered risks, ensuring that renters can recover their belongings without bearing the full financial burden themselves. This type of insurance typically also includes liability coverage, protecting renters in case someone is injured in their rented space.

Homeowners insurance, on the other hand, is intended for property owners and covers the home itself along with the owner's personal belongings. Liability insurance generally covers legal liabilities and is often associated with auto or general liabilities rather than specific coverage for personal property. Property insurance can refer to various types of coverage but is broader and may not specifically address the unique needs of renters. Therefore, renters insurance is the most appropriate choice when looking for coverage tailored for individuals who do not own their residence.