When Is Home Insurance Required?

Home insurance is typically required when you have a mortgage on your home. Most lenders require borrowers to have a home insurance policy in place before they will approve a mortgage loan. This is because the lender has a financial interest in the property and wants to ensure that it is adequately protected in the event of a covered loss.

In some cases, homeowners may choose to purchase home insurance even if they do not have a mortgage on their home. This can provide financial protection for their home and belongings in the event of a covered loss, and can also provide liability protection if someone is injured on their property.

It's important to understand that home insurance is not required by law in all cases. However, if you have a mortgage on your home, you will be required to maintain a home insurance policy as a condition of your loan agreement. Even if you don't have a mortgage, it can be a good idea to purchase home insurance to protect your investment in your home.