Unlike car insurance, homeowners insurance is not required by law.
That being said, virtually all mortgage lenders will require hazard insurance as a condition of your loan. Failing to purchase a homeowners insurance policy to include hazard insurance, will most likely result in your mortgage application being denied, and allowing coverage to lapse once you do have a mortgage can result in a number of negative consequences, including potential default.
But even if you own your home outright and are under no obligation to purchase insurance, doing so is likely a good idea. If you’re like most people, your house is your single most valuable asset. Homeowners insurance offers you significant peace of mind that comes from knowing that if a covered event caused damage to your home, you won’t need to pay out of pocket for major repairs.
