Renters insurance (sometimes called an HO-4 policy) protects a tenant's personal belongings and covers their liability; it does not cover the building itself, which is the landlord's responsibility. A landlord's policy pays to repair the structure; it does not pay to replace a tenant's furniture, electronics, or clothes, and it does not defend the tenant if a guest is hurt in their unit. That gap is exactly what renters insurance fills.
What does a renters policy actually cover?
A standard renters policy generally covers three things: personal property (furniture, electronics, clothes, and more, up to the limit chosen, against fire, theft, vandalism, and many storm-related losses), liability (if a guest is injured in the unit or the tenant accidentally damages someone else's property), and loss of use (temporary housing costs if a covered loss makes the unit unlivable).
For example, a kitchen fire in a rented house damages the building and destroys a tenant's clothes, TV, and textbooks. The landlord's policy repairs the walls and structure. The tenant's belongings are only covered if the tenant had a renters policy.
Does state law require renters insurance?
Generally, no. Neither Georgia nor Alabama law requires a tenant to carry renters insurance, and neither state requires a landlord to carry insurance on a rental unit. Where a lease requires renters insurance, that requirement comes from the landlord or property manager, not from state law; it is a lease term, not a statute.
Is renters insurance expensive?
No. Renters insurance is typically one of the least expensive insurance policies available; the national average premium was $170 per year in 2021 (Insurance Information Institute, citing NAIC data), and it is usually far cheaper than homeowners or auto coverage because it does not need to insure the structure itself, only the tenant's belongings and liability.
A free coverage review can help confirm the right personal-property limit and deductible for a rented home.
Sources
Insurance Information Institute, "Facts + Statistics: Renters Insurance," citing NAIC data.