This is one of the dumbest posts I've ever seen on poal. I am a building contractor, I specialize in disaster recovery. When your house burns or has a major ass flood or gets hit by a freightliner I am the guy that comes and fixes it. So hear me when I say that I am kind of an authority on the subject. >>the bank originating the loan (read making money out of nothing) is the one usually offering the insurance This is not true, banks do not offer home insurance, insurance companies do. Banks can only offer mortgage insurance to pay off your loan if something happens to you or something. So, there is NO conflict of interest. >>you have to pay homeowners insurance (which usually covers nothing) Homeowners insurance covers virtually anything that can happen to your house. However there are some exceptions and you should be familiar with your policy to be sure that you have the appropriate coverage. Some things cannot be insured such as poor craftsmanship. If your home was built with no vapor barrier and water seeps into your walls and they rot away then it is not covered by insurance. If the builder used a shitty half sized beam to span across your "open floor plan" and it breaks in half and collapses then it is not covered by insurance. Home owners insurance is to cover a "sudden and unexpected" loss. It is up to you to be sure that your policy has adequate coverage for you needs. I can't tell you how often people buy the cheapest policy they can find without looking at the coverage or the deductible and then have a shit fit when their policy does not cover something.