You've never had a water pipe freeze during a power outage. That certainly can destroy your shelter. I repeat, electricity and water are vital.
You're funny: "the mortgage company puts you in foreclosure for not having it".
What happens then? You do not have shelter. You did not pay for insurance and now somehow do not have shelter. Same result as if you had never bought said shelter. Same result as if you had never bought the wood, shingles, nails, etc. that would form your shelter. Other than that, try to finance a house without insurance. You will discover that it is not possible. Same result as if you did not have enough money to purchase said shelter in the first place. Therefore, I repeat myself, insurance is vital to my shelter.
I'm sure you'd be further confused if we brought up the concept of "Maintenance".
An even bigger stretch would be grappling with the concept of "cost of living".