Can
I own a home without homeowners
insurance?
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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.
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Information Institute,
Inc. - ALL RIGHTS
RESERVED -
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