Do I Need Homeowner's Insurance If I Have Paid Off My Home?

While you are not required to have home insurance if you own the deed to your home outright, is it a good choice? 

Homeowner's insurance is something you hope you never need to rely on but is a relief to have if a disaster ever strikes. Most times, 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?

Homeowner’s insurance helps cover the cost of damages caused by natural disasters, fires, man-made problems, and theft. Each month, the homeowner pays a monthly premium for this protection.

Homeowner’s insurance covers expenses related to:

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

Do you have to have home 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 to cancel the policy. Select types of home insurance coverages, such as flood insurance, may not be eligible for cancellation if your property is required by law to carry it.

Before you rush into canceling your homeowner’s insurance coverage, 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 protection. If a family member, neighbor, or even a stranger is 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 of damage to your home on your own, without the aid of homeowner’s insurance. You may save over a hundred dollars every month by cancelling your homeowner’s insurance policy, but even if you applied that amount into a savings account, it may only cover a portion of repair costs.

Thunderstorms and hurricanes—and the damages they can cause—are no strangers to Florida residents, and water damage or a fire can occur without prejudice. It is important to consider the purpose of home insurance and the ‘what ifs’ of life (and how to afford them) before canceling your home insurance coverage.

Speak With Your Magruder Home Insurance Agent

Before cancelling your homeowner’s insurance policy, first explore other ways to save. Contact our independent insurance agency and see what savings we can find for you. We’ll also look over your current policy and see if there are areas where you can modify your policy to save on your premium.

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