Do I need homeowners insurance if I don't have a mortgage?

Key Points:

• Homeowners insurance is usually not required once you've paid off your mortgage, but it may still be worth keeping.
• It can help protect your home by covering repair or rebuilding costs after damage from covered events and may pay for temporary living expenses.
• Homeowners insurance also typically covers your personal belongings, like furniture and electronics, if they're damaged or stolen.
• Liability coverage can help protect you financially if someone is injured on your property or if you accidentally damage someone else's property.

When you purchased your home, your mortgage lender most likely required you to purchase homeowners insurance policy. But once you've paid off the mortgage, do you need to keep that homeowners insurance coverage? You are typically not required to have homeowners insurance if you no longer have a mortgage, but there are some good reasons to consider keeping it. Here are a few reasons you may want to continue your homeowners insurance coverage after your mortgage is paid off.

If you've spent years paying off your mortgage, you know that your house is one of your biggest investments. A homeowners insurance policy can be a great way to help protect your home and what you've put into it. It's a good idea to consider whether you could afford to repair or rebuild your house if it were damaged or destroyed.

Homeowners insurance typically helps cover the costs of repairs if your home is damaged due to a covered peril, such as fire, hail, lightning or vandalism. And, should you not be able to stay in your house while it is repaired or rebuilt, your policy may also help cover additional living expenses if you have to temporarily stay in a hotel.