Am I required to have home insurance?
Home insurance isn’t required by law, but mortgage companies require you to have homeowners insurance coverage to finance your home.
This is a security measure for them in order to be able to recover their investment in case your home burns down or in case of other disasters.
If you happen to live in an area subject to floods the mortgage lender will probably require you to purchase a flood insurance.
If you don’t have any mortgage then you’re not required to have home insurance, but you should really consider it: if you don’t have a home insurance you would be paying for any repair, or in the worst case, for a full reconstruction.
No need to say that probably you wouldn’t be able to save enough to rebuild your house.
A home insurance will also pay for living expenses while your house is being repaired: hotel and other expenses until you can move back to your house.
Having a home insurance is absolutely a smart choice, you obviously will always wish that you’ll never need to use it, but it’s well worth the sensation of knowing that, even in case your home received major damages, you’d be backed by your insurance.
If someone accidentally hurts on your property you might be brought to court: you should pay for their medical care and provide them income while they’re recovering. Home insurance covers this too.
In conclusion home insurance isn’t required by law but you should really consider getting one, evaluating how much it would cost you compared to the benefits you’d have from such an insurance.
