Re: Homeowners Insurance After Mortgage Is Paid Off

CindyLouWho

CindyLouWho

Senior Member
Location
USA
Re: Homeowners Insurance After Mortgage Is Paid Off

Is there any circumstance where you would opt to not purchase homeowners insurance...if your home was paid off?
 

I can't think of any unless your house is such a dump that you'd be happy it burned down and your land is worth more than your house. In that case, you probably couldn't get homeowners insurance in the first place. There's so much more in homeowners insurance than just the property. There's the liability part in case someone is injured on your property. And then there's your possessions. Could you afford to replace all that in a disaster? Or a burglary where your stuff is stolen. I can't think of any reason not to have homeowner's insurance. In fact, in addition to that it might be wise, depending on where you live, to have hurricane and flood insurance, too.

Maybe someone else might have a different idea about it.
 
It's tempting at first to think of not having to hand over money to the insurance company, but then if something did happen I guess that amount would seem insignificant, in comparison.
It crossed my mind since I just paid my property taxes last week and I don't feel like dishing out more money right now.
I'm deciding whether I should pay with cash (which I really don't want to do, or pay with my one and only credit card I've been trying to pay off a somewhat small balance on, then I'd have to start all over.
Sorry...thinking out loud.
 
Our home has been paid off long before we retired, and we wouldn't be without homeowner's insurance. Like Olivia mentioned, if someone is injured on your property or there was a disaster, you'd want and need some kind of coverage. So far we've only used ours once for getting a new roof, ours was badly damaged due to hail one year and it needed to be replaced.

I'd pay with cash if I could, and get the balance on your credit card paid off. We try not to make any purchases that we can't pay in full when the credit card bill comes, so far it's been working for us, never had to pay interest or have anything hanging over our heads.
 
Before I bought my condo I always had my homeowners insurance. Would be crazy not to. I always and still do put my insurance payments on a rewards card and then pay it off in full. I could write a check but I like the rewards. Then after getting the rewards I pay the card off in full. Like that rewards check I get from Krogers. Every little bit helps. Last time I got a check for $30.00 that I used to stock up on specials that I use. I still have a policy on my contents along with the liability coverage. Also coverage for my part if we suffer a big loss to the complex and all the owners have to pay their part of the loss. I keep my condo clean and clear but you never know when someone slips and falls on my patio etc and hurts themselves and its my fault. Need that liability coverage.
 
CindyLouWho said:
Is there any circumstance where you would opt to not purchase homeowners insurance...if your home was paid off?
Click to expand...

Paid off...or Not...has little bearing on Homeowner Insurance. The question you should ask yourself is....should disaster strike, can I Afford to lose everything and start all over??? Insurance, of any kind, is a total waste of Money, UNTIL something happens.
 
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I hate paying over $1200 a year in homeowners insurance.

But I loved getting $12,000 from the insurance company this year to pay for a new roof [hail damage.]

A few years ago a tornado passed by a few miles away. I could hear it roaring, it was scary. Thank God my house wasn't damaged.

However, hundreds of homes and other buildings in the nearby town were destroyed.

I saw a news report from the Florida panhandle after Hurricane Michael recently hit. A tree had fallen on a mobile home and cut it into pieces. The poor old man said it sounded like a bomb hit it. But all he could do is grab his dog and run out of his house. He said neither he nor most of his neighbors had insurance. He didn't know what he would do now.
 
Don M. said:
Paid off...or Not...has little bearing on Homeowner Insurance. The question you should ask yourself is....should disaster strike, can I Afford to lose everything and start all over??? Insurance, of any kind, is a total waste of Money, UNTIL something happens.
Click to expand...
Don, Butterfly, Terry123,

The reason I wrote "it was paid off" recently is because now, technically, I don't "have" to have homeowners insurance like is required by lenders, mortgage companies. Yes of course it makes sense to have it, but it's not a slam dunk.
There are people that can't afford it, people looking for full time work, people who are divorced and getting financially on their feet.
When I was calling different homeowners insurance companies, 2 girls from 2 different companies, both told me they couldn't afford home owners at one time because they had to feed their children.
I will renew it, but just saying sometimes what seems to be the only and obvious answer is not the reality of everyone's life. Most go through a crisis at one point or another, if not, consider yourself very fortunate
Thanks for your replies, much appreciated.
 
We had insurance ever since we were married...The first insurance we had when we were in an apartment , our second home we rented, also had insurance...Our first home we bought
also Home Insurance and now we still have Home insurance 41 years we live in our second home...We would never ever not get insurance...We have a pool and have to have insurance...When we had
a Condo we also had insurance....

I hope the people in California that lost their homes in the fire have Insurance....
 

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