Is homeowners insurance required?
While homeowners insurance may be required by your lender, it is unlike auto insurance in the way that it is not required by state law.
A mortgage holder will typically require any homeowner that borrows from them to hold a homeowners insurance policy in order to protect their investment in the home. If the home is located in a moderate to high risk flood zone, the bank may also require the homeowner to carry a flood insurance policy as well since flood coverage is not provided under a standard homeowners insurance policy.
If your lender doesn't require you to carry a homeowners insurance policy or if you do not have a mortgage on your home, it is still important to carry homeowners insurance to protect your investment in your home.
Related Home Insurance FAQs:
- What is a home warranty and does it cover the same thing as home insurance?
- What's the difference between replacement cost and actual cost value?
- If my household appliances cause water damage does my home insurance cover that?
- After I renovate my home, do I need additional home insurance coverage?
- What is the difference between cancellation and non-renewal?
About this content: The content included on this webpage in no way guarantees coverage for any type of insurance policy or policyholder. This is to be used as a general guide for insurance information and any specific coverage questions should be presented to your insurance agent.
