Your home is one of (if not your largest) asset. And, you certainly do not want to risk losing your home by wrongly assuming you have the appropriate coverage to protect you if bad things happen. Homeowners (i.e. property) insurance helps mitigate this risk by covering the replacement cost of your home, your contents and potential liability to others.
You need property insurance to protect your home if it is damaged, robbed or vandalized. You also need property insurance to cover injury to household members (and others while they are on your property).