Can You Own A Home Without Homeowners Insurance?

  1. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    You can, it is your choice of course, but honestly, in my opinion not advisable.  A policy transfers risk from you to the insurance company.  So that should you suffer a loss to the house or personal property, instead of you having to come up with perhaps 10's of thousands of dollars to rebuild or replace your property, the insurance company provides that protection.  Likewise, if you are legally responsible for someone's injury or damage to their property, instead of you having to write the check, your insurance company will.
    Answered on July 1, 2014
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    If you do not have a mortgage you can choose to not insure your home.  The risks that are involved with home ownership are great.  The home represents the largest asset most people have.  If you can sustain lawsuits and the possibility of losing your home, then a homeowner’s policy is not needed.
    Answered on July 1, 2014
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  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! A better one might be why would you want to? The amount that you would pay for the policy will be far less than what it would cost you should something happen to your home, and you were out of the value of the home, and its contents. I suppose that if you are very very wealthy, and can afford that kind of loss, that you could save the money for the policy, and spend it somewhere else. I hope that helps, thanks for asking!
    Answered on July 2, 2014
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  4. 1844 POINTS
    David W. Clausen
    Chief Executive Officer, Coastal Homeowners Insurance Solutions, Rocky Point, NY 11778
    You can own a home without having homeowners insurance but more than likely you will need to maintain the coverage as a requirement of your mortgage contract. Most mortgage companies require "Hazard Insurance" to protect their investment in your home. If you fail to maintain "Hazard Insurance", or commonly known as homeowners insurance, the mortgage company will put "forced insurance" on your home. The forced insurance policy will be much more expensive and will have inferior coverage. Some are even considered a "single interest" policy. This means that the mortgage company is the only beneficiary under the policy (you get nothing). We do not recommend owning a home without homeowners insurance. For many people their home is their largest asset and you should protect it.
    Answered on September 23, 2015
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