Final answer:
The statement is false. Renter's insurance generally includes liability coverage, which may cover legal costs and medical expenses if a friend or neighbor is injured in your apartment, depending on your policy's terms and conditions.
Step-by-step explanation:
The statement that renter's insurance does not cover liability in the event that a friend or neighbor is injured while at your apartment is false. Renter's insurance typically includes a liability protection component, which may cover legal costs and any awarded damages up to the policy limit in cases where you are held responsible for someone else's injuries or property damage. This can apply to incidents that occur within the rented premises.
Additionally, renter's insurance can help cover the costs of medical expenses regardless of who is at fault, for a friend or neighbor injured in your apartment, again depending on the specifics of your policy. However, it is crucial to read the specific terms and conditions of your renter's insurance policy to understand what is and isn't covered, as coverage can vary by policy.