The lack of financing options for those with low to mid-credit is difficult... The desire to own or have the the prospect of owning after a couple of years has positioned the Lease Purchase as a viable option.
Creating accured equity over time for the Lease Purchaser and having the opportunity to personallize the home even prior to owning are "benefits".
All can be LOST with the lack of a Renters policy.
Example: a down payment of 5k, and 2 years of acrued down-payment can be lost in a moment when there is a loss. A Lease Purchaser has much more to loose than a normal tenant. If the Lease Purchaser causes damage or if a Tenant causes damage, the owner's policy will repair the home. The insurance company will find out that the tenant/lease purchaser was responsible of the loss and will "subrogate" against the tenant. That "subrogation" entails the insurance company and owner sueing the tenant/Lease Purchaser for reimbursement.
The Lease Purchaser without a renters policy is subject to having a lawsuit and potentially a bankruptcy to rid themselves of the debt. That type of event results in lost credit and the loss of ability to purchase. The Lease Purchaser would potentially loose their credit, their down-payment, and loose the ability to purchase the home of their dreams.
If you are working with a Lease Purchaser, encourage them to have renters that has "LIABILITY" coverage that equals or is greater than the value of the home being rented. More is better and it is cheap.
Position the Lease Purchaser to succeed amongst life's twist with a simple "renters insurance" policy.