Do I Need Homeowners Insurance Even Without a Mortgage?

Owning a home is a significant milestone, and financially protecting your investment with homeowners insurance should be a top priority.

While it insurance isn’t legally required, it’s essential to understand why it’s crucial, regardless of your mortgage status.

Do I Need it?

Even if you don’t have a mortgage, homeowners insurance can be essential for these reasons:

• Asset protection—Your home is still a valuable asset, even without a mortgage. Homeowners insurance can financially protect you from unexpected events like fires, storms or theft. Without it, you’d likely be responsible for repair costs or replacing belongings out of pocket.

• Liability coverage—Homeowners insurance also typically offers liability coverage. Accidents can happen; if someone gets injured on your property, you may be financially protected with this insurance.

• Peace of mind—Knowing you’re financially safeguarded against unforeseen events may bring peace of mind. Even if you don’t have a mortgage, life is unpredictable, and insurance serves as a financial safety net.

What Does it Include?

A standard homeowners policy typically includes the following types of coverage:

• Dwelling coverage—This can help pay for repairing, replacing or rebuilding your home’s structure after covered perils like fire, theft or weather events (such as lightning, wind or hail). It may also cover damage from external forces like falling tree branches.

• Personal property coverage—Homeowners insurance can financially cover your personal belongings within your home, including appliances, furniture and clothing.

• Other structures coverage—This coverage extends to structures separate from your home, such as sheds, garages or fences.

• Liability protection—If a third party sustains an injury while on your property, liability coverage may assist in paying for their medical expenses and legal costs.

• Additional living expenses—If your home becomes uninhabitable due to a covered loss, this coverage may help pay for temporary living expenses while your home is repaired or rebuilt.

Where to Get Homeowners Insurance

Contact Strawn & Co to discuss your homeowners insurance policy today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.