Yes, but you have more at stake than the lender. Basic fire and allied coverages will meet the requirements of the lender, but they will not cover your personal property (furnishings, etc.), provide additional living expenses if you need to live elsewhere while your home is being repaired after a fire, liability coverage if someone injured themselves on your property, or coverage for theft. So while you can easily satisfy the lender’s needs, you won’t really be protecting your own needs. You’re better off getting the more complete coverage of homeowners insurance.