Is Homeowners Insurance Required if I Own a Home?

Is Homeowners Insurance Required if I Own a Home?

Is Homeowners Insurance Required if I Own a Home?

Here’s what you should know:

  • You’re not required by law to have home insurance, but banks do require it as a condition of your mortgage.
  • Home insurance can help you protect yourself from enormous financial loss.
  • It can also help cover the cost of paying for bodily injury to others or damage to their property. 

Question I realize that home insurance is important, but it seems like the decision to carry it should be up to me. Is every homeowner required to have it?

Theresa Simes, a Farmers Insurance® agent in Fountain Valley, California, discusses the need for home insurance.

Answer Home insurance isn’t required by law, but there are other reasons to insure your home. If you have a mortgage on it, your lender will require you to have insurance until the loan is paid off. In fact, lenders can legally force borrowers to carry insurance to cover the amount of the mortgage. In addition, going without insurance puts you at risk for life-altering financial loss. If your home and everything in it is destroyed, could you afford having to start over from scratch? Anyone who’s experienced the loss of a home would probably tell you how critical it is to have coverage in place.

Farmers® home insurance policies also provide liability coverage in case someone in your household is responsible for bodily injury to others or damage to their property. Liability coverage helps you protect your personal assets from costly lawsuits and can be increased as your assets grow.

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