The short answer is no. Legally, you are not required to hold a homeowners insurance, that’s up to you, but you might need it if you’re interested in acquiring a mortgage, lenders will require you to get your home covered and that’s to protect their investment.
Conditions could vary between insurance companies and policies, so make sure your policy covers everything your lender requires to qualify for the loan, or get the basic home insurance with some additional coverage.
Now, this is not something you need to shop for too often. It is normally just acquired when buying a new house or refinancing and as a recommendation, you could start comparing homeowner’s policies as soon as you start working with a lender. Then you will have enough time to get several quotes and be insured by the time you move to the new place.
Once you’ve completed paying the mortgage, you wouldnt necessarily be forced by the lender to keep having your home insured, that’s your choice and it is highly recommended by some experts to keep protecting your property, your belongings and your pocket from covered events that could affect your wallet in a big way.
What can your homeowners policy help you with?
House: If your home needs to be repaired or rebuilt after a covered loss, these policies will normally back you up with the payment.
A roof: While your home goes under treatment after a covered event, you’re typically handed additional living expenses coverage to pay for a hotel.
Belongings: For damaged or destroyed belongings under the covered situations, this insurance can help you pay to replace them.
Bills: For bills related to events or accidents taking place in your property there’s also support in case you’re held liable. Legal costs plus just medical bills can end up being a big big expense if you’re not covered.
One last piece of free advice: Make sure you know the dollar limit specified in the paperwork, and make sure you are comfortable with the deductible in case of a loss.
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