Renter's insurance and subleasing

[L'Rainne Molina]

We got approval from our landlord to sublease 2 other rooms in the house. We have found a potential candidate. Does anyone know how the renter's insurance works in this case? We have our policy for the two of us (myself and SO). Does the additional tenant also need to have their own policy? Can multiple people have their own rental insurance policies with one address? Our rental policy wouldn't allow us to add a third person. Does anyone know the best way to go about this to protect all parties? Our landlord is very hands off, so we're in complete control of this.