Do I Still Need Home Insurance if I Don’t Have a Mortgage?

Most homeowners have home insurance primarily to protect their investment and all the hard work they’ve put into purchasing and maintaining their house. However, it is also true that most mortgage lenders require homeowners to carry home insurance coverage as part of the lending contract. So, if you don’t have a mortgage, do you actually NEED home insurance?

At U.P. Insurance Agency Inc. in Negaunee, MI, we see this question a lot. The short answer is, it depends.

If you’ve paid for your home in full and do not have a mortgage you’re paying off, there is generally no legal requirement in the state of Michigan for you to carry home insurance. That said, if you live in a gated community or another kind of private neighborhood, you may be required to have insurance as per your HOA or community association to keep your individual property protected. Likewise, if you own a condo, your condo association may ask that you carry insurance (though it should be noted that condo insurance is a separate kind of coverage from homeowners’ insurance). 

If none of that applies and you’re still not sure if you need home insurance, it’s worth considering what you’ll do in the event of an unexpected damaging event. If you end up losing a lot in a disaster, theft, or accident, are you able to pay for the damages out of your own pocket? The truth is that it can be practically impossible to predict just how much a damaging event could cost you. Having a good home insurance policy ensures that you won’t be held responsible for paying everything out of your own personal finances. 

Have questions about home insurance and whether it’s the right choice for you? Our experienced agents at U.P. Insurance Agency Inc. in Negaunee, MI are local homeowners too and are ready to help. Please shoot us a message or give us a call today to get in touch!