Homeowners insurance is something you hope you never need to rely on but is a relief to have if a disaster ever does strike.  In many cases, if you financed your home, then homeowner’s insurance is a requirement to have. But what if you have paid off your home, what then? Do you still need homeowner’s insurance?

What Is Homeowner’s Insurance?

Homeowners insures helps pay for damages caused by natural disasters, fires, man-made problems, and theft.

Basically, homeowner’s insurance covers expenses related to:

  • Rebuilding your home
  • Replacing your stuff (personal property)
  • Damages and destruction of your property
  • Other expenses after the loss of your assets

Do you have to have homeowner’s insurance if you own your home?

If you have paid off your mortgage in its entirety, then yes, you could cancel your homeowner’s insurance. You would have to contact your homeowner’s insurance agent or company in order to cancel the policy, but before you rush into doing that, consider a few things first.


Homeowner’s insurance does more than just help to fix or rebuild your home in the event of a disaster. There are other benefits of having an active homeowner’s insurance policy. One such benefit is liability coverage. If a family member, neighbor, or even a stranger are injured while on your property, homeowner’s insurance includes coverage against your liability, including the legal fees. Injuries can include a slip and fall, dog bite, falling into a hole, or tripping over a branch or paving stone. Other coverage for liability includes if a covered member of your household damages another person’s property.

Savings and Financial Strength

Another major factor to consider is your financial capability to cover costs to damages on your own, without the aid of homeowner’s insurance. You may be saving a little over a hundred dollars every month by cancelling your homeowner’s insurance policy but even if you apply that amount into savings it may only cover a portion of repair costs next hurricane season.

Before cancelling your homeowner’s insurance policy, first look into other ways to save. Contact our independent insurance agency and see what kind of savings we can find for you. We’ll also look over your current policy and see if there are areas where you can cut back or reduce coverage in order to save on the premium.