If you are under a mortgage, and even some refinance loan plans, you will likely be required to have homeowners insurance, or it will be included in your payments and paid from escrow. If you own your home fully, homeowners insurance is optional – but recommended.
After I pay off my home, should I keep homeowners insurance?
While it is up to you at that point, you must remember that homeowners insurance does not only cover your home and the possessions inside of it. It is not only covering you from damage, fire and flood on your home.
Homeowners insurance protects your full property.
This is important, as someone simply delivering something, knocking on your door and doing a repair on your home, may get injured; accidents happen. If a lawsuit is involved, having insurance means the financial ruin you could experience is likely severely limited with insurance.