Most people rely on insurance as a safety net for protection from surprises.
When it comes to financing the purchase of a home, insurance not only gives you peace of mind, but it is required to close the transaction. The best known type of insurance involved with a home purchase is hazard insurance, also called fire insurance and homeowner's insurance. Most homeowner insurance policies cover theft, fire, vandalism, and so forth. Another portion of the policy can protect homeowners in the event that they are found liable for another person's injuries sustained while on the homeowner's property, such as having someone fall on your stairs. You are even protected if your dog bites someone.