You aren’t legally required to have homeowners insurance after you’ve paid off your house.
However, it’s wise to hold onto your home insurance policy to protect your home, personal belongings, family liability, temporary living costs, and more, in the wake of a loss.
Is homeowners insurance included in mortgage payment?
An escrow is a separate account where your lender will take your payments for homeowners insurance (and sometimes property taxes), which is built into your mortgage, and makes the payments for you. Some borrowers will be required to escrow their insurance and property taxes into their mortgage payments, and some won’t.
Do you need homeowners insurance before closing?
In most cases, yes, you will need to purchase a homeowners insurance policy before the lender will allow the closing to proceed. But generally speaking, borrowers need to buy homeowners insurance before they can close on a home loan.
Do you really need home insurance?
homeowners insurance is required by your mortgage lender
While it’s not a state requirement like auto insurance, you typically need homeowners insurance if you’re financing your house. Home insurance guards your lender’s investment from loss or damage caused by covered risks like a fire or vandalism.