Homeowners Insurance Information

Can I own a home without Homeowners Insurance?

Unlike driving a car, you can legally own a home without homeowners insurance. But, if you have financed the purchase of your home with a mortgage, your lender will most likely require you to get Homeowners Insurance coverage. That’s because lenders need to protect their investment in your home in case of a disaster.

If you live in an area that is likely to flood, the bank may also require you to purchase Flood Insurance. Some financial institutions require earthquake coverage for regions vulnerable to phenomenon. The same can also apply to those purchasing a co-op or condo.

After your mortgage is paid off, there is no law specifying the requirement of Homeowners Insurance, however, most insurers advise retaining your policy in order to prevent the risks involved in losing your home.

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Information provided with permission from the Insurance Information Institute, Inc.