Ron covered it well. In addition to fire & theft that homeowners cover you may also consider flood or earthquake coverage. These are generally not covered by the general home owners policy. If you live in a flood zone, this will be mandatory with your lender.
Mortgage insurance is a different product required by lenders if you have less than 20% down on most loans. Mortgage insurance, also known as Primary Mortgage Insurance (PMI) protects the bank incase you default. Your only benefit is the ability to get the loan.... more