Mortgage lenders require homeowner insurance for several reasons. First, it protects their financial interest in the property. In the event of damage or destruction to the home, the insurance ensures that the lender's investment is safeguarded. Second, homeowner insurance also provides protection for the homeowner, which indirectly benefits the lender by maintaining the value of the property. Third, it is a standard practice to mitigate risk for both the homeowner and the lender. Without insurance, the homeowner may not have the means to repair or rebuild the property in case of a disaster, which could lead to financial loss for the lender. Finally, homeowner insurance is a way to ensure that the property is maintained and protected, which is in the best interest of both the homeowner and the lender.