I think he is referring to homeowners insurance. Unlike driving a car, you can legally own a home without homeowners insurance. However, if you finance your home with a mortgage, your lender most likely will require you to have home insurance coverage to protect your home in case of damage caused by unforeseen circumstances (fires or natural disasters).<p>Last time I checked homeowners insurance prices were something between 0.5-1% of the home value annually. It sounds ridiculous  but it does not cover flood, you need separate insurance for that.<p>Edit: Lender will require this insurance until home is 100% paid off.