Renters insurance and landlord insurance are two different types of policies that work together to fully protect a piece of real estate and the personal property kept on the property. Renters insurance protects the people who are living in the dwelling, their personal property and liability concerns. Landlord insurance protects the dwelling and other structures and provides liability coverage for the owner of the property against any claims that may arise from the property itself.
Simply put, your landlord does not have an insurable interest in your personal property and is not responsible for protecting it, nor do you have an obligation to cover the ordinary perils which a home may face. If a fire destroys the home, the landlord insurance would pay to repair or replace the home, but it would not pay to replace your personal property.
If your wife accidentally backs over the neighbor's trash can or mailbox, renters insurance would pay for the repair or replacement. If that same neighbor came over to visit and slipped on a loose rug, your renters insurance would pay for the injury as well as covering any litigation that may arise. A landlord insurance policy would pay for a tree falling on the neighbor's house or the injuries resulting from a loose paving stone, since those two things are the property of the landlord.
Landlord and renters insurance are two completely separate types of coverage and do not overlap. Renters insurance covers you, your family, and your own property, while the landlord policy covers the actual dwelling and any property belonging to the owner. Without renters insurance, you are personally responsible for your own family and property, and the costs of even a mild claim could easily put your financial situation in the red.