Renters insurance describes a type of insurance that provides protection for individuals who rent apartments and homes. It's similar in many ways to homeowners insurance. One major difference between the two forms of insurance, however, is that the renters variety generally doesn't provide compensation for the actual building. Instead, it offers coverage for renters' possessions. If a rented apartment or home experiences destruction due to an earthquake, fire, flood or burglary, to name a few possible examples, the tenant could be eligible for coverage.