A standard policy on your rental home generally includes coverage for:
Your personal property
Renters insurance can help with costs due to theft or covered accidents (like a fire or burst pipe in your home). It even insures valuables you may have with you when traveling, so you're not left footing the bill if they get stolen.
Sadly, injured parties sometimes sue. If an accident at or away from home becomes a lawsuit, renters insurance can help with your legal fees.
If someone is injured at your place or you accidentally hurt someone away from home, having coverage can help with their medical fees.
Additional living expenses
If a covered loss forces you out of your rental unit, your policy can help pay for incremental expenses (hotel, food, etc.) until it's safe to go home.