It is not strictly illegal by federal or state law to own a home without homeowners insurance if you own the property outright and hold the deeds free and clear of any financial liens or mortgages. However, if you have an active mortgage or home loan, your lender will legally require you to maintain a comprehensive homeowners insurance policy at all times to protect their financial investment in the collateral property. Allowing your policy to lapse on a mortgaged home gives the lender the right to purchase expensive forced-place insurance and bill you for the cost.
1 votes
Marked as accepted