What is renters insurance designed to protect?

Renters insurance is specifically designed to protect the personal property of tenants within a rented dwelling. This type of insurance provides coverage for belongings such as clothing, furniture, electronics, and other personal items in the event of theft, fire, water damage, or other covered perils. It serves as a financial safety net for renters, helping them recover from losses without having to bear the full cost themselves.

While the other options involve property-related aspects, they do not align with the primary focus of renters insurance. Real estate investments, property equity in homes, and landlord liability claims are not the responsibility of tenants and are generally covered under different types of insurance policies. Therefore, the key function of renters insurance is to safeguard the tenant's own possessions, making the protection of personal property the correct answer.