The reason we require Renters Insurance is the rare occurrence of a structure fire or perhaps major water damage that will render the Apartment Unit or Rental Home uninhabitable.
We’ve had instances for example in a 4-plex apartment when the upstairs units laundry room flooded both their apartment and the unit directly below them.
In this case the Upstairs unit had Renters Insurance
which covered their move and replacement of their furniture and belongings.
If you are going to rent with Friends - A Roommate kind of deal...? Get it all in writing because if you are friends that have never been roommates before.. if you want to "stay friends".. read this article