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The only good thing it does is share its food among all the occupants, to help prevent the 'hoarding' effect. So that is only useful early game & if you have no other houses.
I hardly ever use them. Rather spend the resources on more hospitals.
But if the OP chooses to accept Nomads then it will be needed. If not accepting nomads then there is no requirement.
Though from time to time with a large fire its sometimes nice to have or if someone chooses to do a large amount of housing upgrades.
Depends on how the OP wants to play the game.
But some do like to have everything that makes the game more difficult turned off in that case there is no requirement what so ever to build it.
But that is a Mod issue I encounter from time to time. Otherwise, like everyone above me has stated, You nailed it in One!!