Is Homeowners Insurance Required?

Oct 30, 2024 | Insurance FAQs

Is homeowners insurance required? Homeowners insurance is a topic that often raises questions, particularly regarding its necessity. Whether or not it’s required can depend on your specific situation. If you own your home outright, without any liens or mortgages, you have the flexibility to choose whether or not to insure your property. In this case, having insurance is entirely up to you and your personal preference for risk management.

However, if you have a mortgage or any type of lien on your home, homeowners insurance is typically a requirement set by the lender. Mortgage companies want to protect their investment, which is why they mandate that borrowers maintain an active homeowners insurance policy. This coverage helps ensure that if any damage occurs to the home, both the homeowner and the lender are financially safeguarded.

While it might feel like a burden to pay for homeowners insurance, it offers valuable protection against potential risks, such as damage from natural disasters or liability claims. Understanding whether you need it and what it covers can help you make informed decisions about your home and finances. In this video, we’ll delve deeper into the nuances of homeowners insurance requirements and why it’s essential to consider even if you don’t have a mortgage.

Our owner and founder, Pat Brennan, explains more. Check out the video below!

Is Homeowners Insurance Required? – Entrust Insurance, St. Clair Shores

Video Transcription

“It depends. So if you own your house outright, no mortgage, no liens, no nothing, you can do whatever you want. You can have it insured or not insured. Totally up to you. If you have any type of lien holder, so typically a mortgage they will require that you have homeowner’s insurance.”

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