In order to rent the aircraft solo the flight school requires insurance on me to basically pay the deductible of their insurance if something happend. Their insurance covers every while recieving dual.
What he says, below. It seems common now for FBOs to require renter's insurance now.
Because the owner's insurance doesn't protect you, it protects him. If you're negligent and wreck his plane, insurance pays him and sues you.
And similarly, if you wreck something or someone else with the plane, the injured party is going to sue you directly so you'll want your own liability policy as well.
I've just finished looking at this and conclude that EAA's program through Falcon has rates more favorable than AOPA's or Avemco's for what that's worth. I had a policy through EAA last year, just passed my ASEL checkride and decided to up my insurance mainly to cover my hull-replacement exposure. The plane is valued at $75k on the owner's policy. While salvage will reduce the loss amount there could be significant loss of use if the airplane is not totaled. Lost use is included under EAA's PhysDam coverage. The FBO [owner's] policy provides limited liability coverage but no hull coverage.