Is Home Insurance Mandatory?

Do homeowners who have paid for homes with no mortgage have to pay for flood insurance? Do rental homes have to have flood insurance?

Answer:

It is not compulsory for you to have insurance of any kind, once your mortgage is paid. There is no government requirement. However, most lenders will require it, to ensure that they will get their money back if anything happens to your home. Once your mortgage is paid out, you are on your own.

 

As far as we know, it is the same thing for rental homes. However, since the home is an asset to the landlord, it makes good sense for the landlord to have flood insurance. Keep in mind that this will not cover the contents of the home. That is the renter's responsibility.

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