You are permitted to own a home without having homeowners insurance. However, most people who have a financial stake in your property, like your bank, would demand that it be insured. You'll also want to ensure that your home has enough homeowners coverage for your continued financial security. It's critical to remember that coverages have limits, which represent the highest amount your insurance policy will contribute to a claim that falls inside its view. Make sure to take into account factors like the probable expense of rebuilding your home or replacing your goods when choosing your coverage limits. By doing so, you can be better ready in case a fire or another covered peril damages or destroys your house or your possessions.
Your lender may also require flood, earthquake, or tornado protection if you live in areas that are prone to poor weather or more frequent natural disasters.
