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!

Answer
“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.”
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Shannon Martin
Answered on Jul 26, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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