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Can you go without homeowner's insurance?

Can you own a home without homeowners insurance? Well... yes, but if you have a mortgage on the property, the mortgage company will more than likely require it as a condition of the loan. They don't want the place to burn down and then end up trying to collect hundred's of thousands of dollars from you. The lender wants to protect its investment against things that can go wrong. In addition, some mortgage companies may also require you carry flood insurance or earthquake insurance. Flood insurance and earthquake coverage probably won't be required unless you are in an area that is prone to that exposure or risk.

Once your home is paid for, there is no law saying you have to carry homeowners insurance. We don't recommend owning a home without homeowners insurance. There is much more coverage in a policy than coverage for the building itself. Your home insurance policy will cover your dwelling, your contents, your personal liability, medical payments to others and loss of use if you are our of your home due to a covered loss.

If you are seriously thinking about going without home insurance coverage, stop right now. Home insurance premiums are reasonable in most areas and will seem like the lowest price on earth if you have a loss.