Known as PMI, Private Mortgage Insurance protects the lender in case you default. The recent introduction of these new loan programs serve as evidence of the continuing evolution of the mortgage industry, and why you need to seek counsel from those who monitor the latest developments. If you're still paying for mortgage insurance, you need to write a letter to your mortgage company to tell them to eliminate that charge. If the home is damaged or destroyed, this coverage provides you the money you need to rebuild the home and replace its contents. Only a fool would own a home without such insurance, and indeed, your lender will require proof that you have it.
Some financial planners offer it as well.
Title Insurance Title insurance comes in two parts, one to protect the lender and one to protect you. Your property may have changed hands dozens of times over the past 400 years, especially if it's on the East coast. If that's true, you might not own the property you think you bought. Title insurance protects you from the catastrophe of losing your home because someone challenges the validity of the title in court. This is why lenders require that you buy a policy to protect them, and why I strongly recommend that you buy a second policy to protect yourself.