The "insurance" may not be homeowners insurance, but mortgage insurance, which some lenders require for reasons such as the downpayment being less than 20%.

It's how they recoup their lossed if someone defaults on their loan.

It's usually only required for the first couple/few years and is dropped after that.

Figure out what kind of insurance it is (most likely mortgage ins), then see if they're eligible to move on from it.

The US Homeowners Protection Act of 1998 allows for borrowers to request PMI cancellation when the amount owed is reduced to a certain level. The Act requires cancellation of borrower-paid mortgage insurance when a certain date is reached. This date is when the loan is scheduled to reach 78% of the original appraised value or sales price is reached.