It is not illegal to own a home without house insurance in Canada, as no federal or provincial law mandates property insurance for residential homeowners. Consequently, an individual who owns their home outright with cash and carries no active mortgage can legally choose to assume the financial risk of going completely uninsured. However, the situation changes entirely if there is a mortgage on the property; lenders contractually require continuous home insurance, and letting a policy lapse prompts lenders to buy expensive force-placed insurance.
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