Do You Need Insurance If Your House Is Paid Off?

People keep insurance on their homes while they’re making payments to protect themselves in the event something happens. Lenders often require it as well. However, after your mortgage is paid off, you may think you can take a risk and save yourself money. Rising Star Insurance, serving Saint Paul, MN and the surrounding region, wants to educate homeowners about the risks associated with dropping insurance after their house is paid off. 

Legal Requirements

While you have a mortgage, lenders usually require you to have insurance to make sure they get their money. Additionally, this insurance protects the homeowner as well if something should happen. Since you no longer have a lender who wants payment for your home, you no longer hold any obligation to have homeowner’s insurance. On the contrary, homeowner’s insurance protects you once your home is paid off. It provides you with compensation if your home or possessions should be damaged. Each policy is different regarding how much and what it covers, so it’s important to compare your policy. You’ll also need to make adjustments to your policy once you pay it off.

Saving Money in the End  

Think about what would happen if something caused an extensive amount of damage to your home. Would you be able to afford to make the necessary repairs? Additionally, if something happened that made your house uninhabitable, do you know where you’d go? Would you have the money to stay in a hotel and still afford to hire help to repair the damage? Keep in mind, you may have to spend thousands of dollars in damages. 

Receive a quote for homeowner’s insurance from Rising Star Insurance, serving Saint Paul, MN and the general vicinity, by calling 651-379-2788. 





Saint Paul MN