Which type of insurance is typically required when purchasing a home?

Homeowners insurance is typically required when purchasing a home because it protects both the homeowner and the lender. Lenders often mandate that borrowers obtain homeowners insurance to safeguard the property they are financing. This type of insurance provides coverage for damages to the home, personal property within it, and liability in case someone is injured on the property. By requiring homeowners insurance, lenders ensure that their financial interest in the home is protected from risks such as fire, theft, vandalism, and certain natural disasters. This requirement promotes responsible homeownership and provides security for both parties involved in the transaction.