2007-07-25 07:41:28 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It is not a law per say. However the lender who holds the lien on your house may require that you carry insurance. If you currently obtained your loan the Truth & Lending Doc will have a box marked to indicate if the insurance is in fact manditory.
2007-07-25 07:49:10 · answer #1 · answered by ? 4 · 3⤊ 1⤋
There is no legal requirement to do so. Lenders will require it so if there is a total loss the loan will be paid off with insurance money.
Not insuring your home, however, is probally the stupidest thing you can do if own a home outright. Your home is most likely your biggest asset and that fact alone should be enough to insure it. There are many perks to having a homeowners policy. One of which is that it will cover your possesions. You may not think that your stuff is worth mutch, but it doesn't matter. Most homeowner's policies cover (or have an endorsement that will cover) contents with replacement cost. Your TV may be old and your couch is a piece of junk....but what would it cost to buy a new one of similar make and model? Another bonus of homeowner's insurance is the liability that is included in the policy. If someone breaks an ankle on your porch or slips and falls down your stairs....you pay. And if you have no money, the first thing to go is your possesions.
2007-07-25 14:56:11 · answer #2 · answered by Anonymous · 1⤊ 0⤋
The above answer is correct in indicating that it is not a law. HOWEVER, if you have a mortgage your lender will require coverage, and if you are in a High Risk Flood Zone it is MANDATORY that your lender require you to carry Flood Insurance.
Also, even if you own your home outright I would recommend that you carry insurance on your home. For most people their home is their biggest investment, you'd hate to lose it due to an unforeseen event! Fire, Flood, Hurricane, Water Damage etc...
2007-07-25 14:52:12 · answer #3 · answered by AriesJWR 4 · 0⤊ 0⤋
If you have the home financed, your lender will require that you insure the home, or they will find buy insurance and charge you for it. And it is expensive.
But there is no law that requires a home to be insured.
However, common sense will require that the home is insured.
2007-07-25 14:56:52 · answer #4 · answered by godged 7 · 1⤊ 0⤋
You'd be an idiot no to. Lender may require it in order to approve the mortgage. If someone slips and falss - you'll have to pay out of your pocket. If house burns down - nothing gets replaced, etc
2007-07-25 14:52:13 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No. But, if you have a mortgage, the bank will require you to carry insurance. If you do not, the bank will buy insurance then charge the premiums back to you.
2007-07-25 14:50:25 · answer #6 · answered by regerugged 7 · 1⤊ 1⤋
loan processor with no name ---has it correct.....
but also remember - if it is a townhouse or condo...you will need condo insurance...because if the complex has a fire or damages....the condo assoc will access a certain % of damages to all the residents within that area...so you really need insurance.
remember insurance is not just fire, flood etc...it is also liability...if someone is hurt on your property.
good luck
2007-07-25 15:07:59 · answer #7 · answered by Blue October 6 · 0⤊ 1⤋
That really depends on where you live...and whether or not you have a mortgage or own your house outright.
2007-07-25 14:47:14 · answer #8 · answered by widewillie 4 · 0⤊ 1⤋
I am not sure, but i think no. But to be sure, check out this site. It will give you details on home insurance.
http://articles.directorym.com/Home_Insurance-a889.html
2007-07-25 14:49:55 · answer #9 · answered by Ana Pilar R 2 · 0⤊ 2⤋
please try this
help!
2007-07-25 21:49:19 · answer #10 · answered by Anonymous · 0⤊ 2⤋