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, etc. Another portion of the policy can protect homeowners in the event that they are found liable for another person's injuries which were sustained while on the homeowner's property. This would include situations such as having someone fall on your stairs or even being bitten by your dog.