David,

It's recommended that renters have their own insurance. The reason is to protect you as the landlord. If a disaster or theft were to occur they could come after you to pay for their loss. Requiring them to have renters insurance is an easy way to protect yourself and is relatively inexpensive. i.e.: Gieco offers this for about $14.00 a month.

Good luck with your rental!

Shawndra

http://www.rentingauthority.com