Renter's insurance provides financial protection for your personal property and liability coverage in case someone is injured while in your rental property. It typically covers belongings such as furniture, electronics, and clothing in the event of theft, fire, or other covered disasters. Additionally, renter's insurance can help cover the cost of temporary living expenses if your rental becomes uninhabitable due to a covered event. It also offers liability protection if you accidentally damage someone else's property or if someone is injured while in your rental. Overall, renter's insurance provides peace of mind and financial security for renters in various situations.