A well-designed property insurance policy can protect a landlord's rental property from losses caused by many perils, including fire, storms, burglary, and vandalism. (Earthquake and flood insurance are typically insured under separate policies.)
A comprehensive general liability ("CGL") policy provides liability insurance, covering injuries or losses suffered by others as the result of defective conditions on the property. Equally important, liability insurance covers the cost (mostly lawyers' bills) of defending personal injury lawsuits.
Here are some tips on choosing insurance:
If you need more information, The Legal Guide for Starting & Running a Small Business, by Fred S. Steingold (Nolo), contains a detailed discussion of small business law, including how to insure your rental property.