Is homeowners insurance mandatory?

Do I have to have insurance now that my home is completely paid for? I just mailed the last payment for my home to my mortgage company! Now that I am free and clear of that monthly bill, I have to start making my homeowners insurance payments directly to the insurance company. I never realized how much it was before!

Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Congratulations on paying off your mortgage; that has to be a fantastic feeling!
Now that you own the home outright, no, you aren’t required to carry
homeowner’s insurance
You should keep insurance though!
If there were a fire that burned down your house, you would need to pay to rebuild your house out of pocket, along with the cost of replacing any personal property lost.
While losing your home in a fire may feel like an extreme example, fires and other large losses like falling trees or wind and hail damage are common and very costly.
Your homeowner’s policy also has liability coverage and medical payments attached.
If someone gets hurt on your property and it is deemed your fault, your homeowners policy will protect you up to the liability limits listed on the policy.
If someone gets hurt and you no longer have homeowners insurance, all the hard work of paying off your home would be replaced with new expenses.”
View full answer 
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free