What types of insurance are generally required for real estate transactions?

In real estate transactions, homeowner's insurance and title insurance are typically required to protect both buyers and lenders. Homeowner's insurance safeguards the property against damages from events such as theft, fire, or natural disasters, giving assurance to both the property owner and the lender that their investment is protected. Title insurance protects against potential issues with the property's title, such as liens or ownership disputes that could arise after the purchase. This type of coverage is essential in ensuring that the buyer receives a clear and marketable title to the property.

Other forms of insurance mentioned, such as builder's risk insurance, serve specific purposes related to construction projects but are not generally required in standard real estate transactions. Health and life insurance, along with car and renters insurance, do not have a role in the context of real estate buying or selling, thus making homeowner's and title insurance the correct and relevant types of coverage needed in these transactions.