What Happens if You Don’t Have Home Insurance?

Since home insurance isn’t generally required by any state or federal law, you likely won’t face any direct legal repercussions for not carrying home insurance. This doesn’t mean that you don’t need home insurance or that there are no other channels of requirement, however. When you purchase a home, you typically have a mortgage. Your mortgage lender may require you to carry home insurance as long as you have a mortgage on your home. The lender will generally require you to have enough home insurance to cover your mortgage. 

Aside from requirements, living without home insurance means risking to pay out of pocket after a disaster or accident to damages and injuries to your home. This main include: 

For example, if a bad storm causes hefty damage to your home, you would have to pay for repairs out of pocket. If you have home insurance, you could file a claim and only be responsible for your deductible. 

An especially expensive risk is liability. If someone is injured on your property, their medical bills could fall to your responsibility—as can a potential lawsuit for extra damages. Without home insurance, you could look at paying medical bills, defense costs, court fees and settlement expenses all out of pocket. 

Be sure to speak with an insurance agent if you have any questions about insuring your home with an insurance policy. Home insurance shouldn’t be expensive or complicated. When searching for home insurance, make sure to compare quotes between multiple insurers to find the best policy for your budget.