Don’t Have Home Insurance

Don’t Have Home Insurance

Writing your mortgage check each month makes many homeowners wonder what might happen if they didn’t have to pay for home insurance. Cancelling the policy could save a few hundred dollars per month on their mortgage if the cancel and remove it from their escrow, but the effects are dangerous. It seems outrageous to think anyone might realistically consider canceling their home insurance, but many homeowners do. They own their homes outright. They forgo insurance on vacation homes since they have it on their primary residence. They cancel policies to save money, and they assume nothing unfortunate will happen.

Expecting the unexpected is the premise of home insurance. Floods, hurricanes, tornadoes, wind, downed trees, fire, and burglary could happen at any moment in time. It’s unpleasant to think these things could happen to you. Chances are slim they will happen, but preparing for the unexpected is safer than living like you’re invincible. What might go wrong without home insurance is terrifying, and most people never consider what could happen.


All homeowners are required to provide reasonable care to anyone who might enter their property. It’s reasonable to assume you knew your broken sprinkler caused a slick, icy walkway yet you did nothing to warn anyone of the imminent danger. The injured party might sue you, and you have no protection against that lawsuit without home insurance. Insurance provides liability insurance so you don’t suffer financially in case something like this occurs.

The Cost of Disaster

All it takes is one light to spark and cause the Christmas tree to go up in flames for your house to burn down and destroy all your worldly possessions. If you don’t have an insurance policy on your home, you are personally responsible for replacing all your belongings as well as rebuilding or buying a new home. Home insurance pays the homeowner the value of the home as well as the value of their lost personal property so you have the funds to replace what you lost. Most families cannot afford to lose a home and their worldly possessions without receiving a check from the insurance company to cover the costs associated with replacement.

The Cost of Repairs

Home insurance isn’t just for major disasters and total loss. It’s also beneficial for anyone who owns a home that needs some work. If a storm causes your roof to leak and you need to replace the roof as well as make some interior repairs to a few rooms inside, you’ll need the funds to do this. If you have insurance, it’ll cost you nothing more than your deductible to have these things fixed and repaired. Most homeowners can’t afford to spend thousands of dollars making repairs to their home when something occurs. It’s why insurance is such a must.


If you bought your home borrowing money from a bank, you need insurance. No lender permits homeowners from living in a home that’s not insured. If you own a home and decide you can no longer afford home insurance, you’re going to want to know what might happen. The bank is not going to be pleased. They own your home until your mortgage is paid off, and they don’t want that home to burn down or be damaged in a flood when no one can afford to make the necessary repairs. They want to know their investment is safe.

The first thing your lender might do is file a lien against your home if you cancel your home insurance policy. This lien could state you have a certain number of days to reinstate your insurance or they can foreclose on the home. If you fail to maintain your home insurance, you could see the bank foreclose your home. Most homeowners will agree losing their home to foreclosure over homeowner’s insurance is not an ideal situation.

If you ever considered dropping your homeowner’s insurance to save a little money throughout the year, now is the time to let go of that thought. The consequences of not having insurance on your home are extreme. If the cost is too much, shop around for other policies from other agents. Ask for discounts, install an alarm system, or even consider moving to a safer neighborhood or one in an area that’s not a flood zone or considered high risk in another way. You could lower the cost of your insurance and save yourself financially.

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