Buying house insurance is indeed a type of risk management. In the context of project management, risk management involves identifying, analyzing, and responding to risk factors throughout the life of a project in the most efficient way. The primary goal is to minimize the impact of risks on the project’s objectives. Buying insurance is a risk transfer strategy, which is one of the risk responses identified in the PMBOK Guide. It transfers the financial risk of property damage from the homeowner to the insurance company, thus managing the potential negative impact on the homeowner’s financial state.

References: = PMBOK Guide, 6th Edition, Chapter 11: Project Risk Management; Project Management Institute’s standards and certifications for the Project Management Professional (PMP)® certification include risk management as a key component1.