Renter's insurance is necessary when you rent a living space, such as an apartment or house, from someone else. It provides financial protection for your personal belongings, liability coverage, and additional living expenses in case of certain events like theft, fire, or natural disasters. It's important to have renter's insurance to safeguard your belongings and protect yourself from potential financial losses. The cost of renter's insurance is relatively low compared to the potential benefits, making it a wise investment for any renter.