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Can I Legally Own a Home Without Home Insurance?


Published on May 05, 2016

Actually, yeah: you can legally own a home without homeowners insurance. The keyword being: "legally". This is in the same sense that driving with sunglasses at night isn't illegal. You can do it, but you probably shouldn't.

But, if you have bought your home and financed the purchase with a mortgage, your lender will most likely require you to get homeowners insurance coverage. That’s because lenders need to protect their investment in your home in case your house burns down or is badly damaged by a storm, tornado or other disaster. This means that if you don't want to have homeowners insurance, you'll most likely have to pay for that house in cash.

If you live in an area that is likely to flood, you'll probably also be required to purchase flood insurance. Unlike some other areas of the United States, in the state of Florida, you're not required to buy insurance for earthquakes. If you buy a co-op or condominium, the board will probably require you to buy homeowners insurance.

After your mortgage is paid off, no one will force you to buy homeowners insurance, but remember that if your home is left uninsured, any damage or peril that occurs to your home (which is your investment) will come out of your own pocket and there won't be any way to mitigate the cost for replacement or repairs.