|
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
bought your home
and financed the
purchase 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 your house
burns down or is
badly damaged by
a storm, tornado
or other
disaster.
If you live in
an area that is
likely to flood,
the bank will
also require you
to purchase
flood insurance.
Some financial
institutions may
also require
earthquake
coverage if you
live in a region
vulnerable to
earthquakes. If
you buy a co-op
or condominium,
your board will
probably require
you to buy
homeowners
insurance.
After your
mortgage is paid
off, no one will
force you to buy
homeowners
insurance. But
it is not
advisable to
cancel your
policy and risk
losing what
you’ve invested
in your home.
|
|
|
|
|
© Insurance
Information
Institute, Inc.
- ALL RIGHTS
RESERVED -
|
|
