• GIVE US A CALL (561) 609-1000
  • (561) 609-1000
  • GET A QUOTE
  • CUSTOMER LOGIN
  • AGENT SIGN-IN
People's Trust Insurance
  • Customer Login
  • Agent Sign In
  • Insurance
    • Insurance ChoicesLearn about Florida homeowner’s insurance options
    • Flood InsuranceInformation about flood insurance in Florida
    • Insurance TermsInsurance Terms Glossary of terms
    • Buyers Guide HubHome insurance buying info
    • Discountsavailable discounts on home insurance
    • Homeowners InsuranceTraditional home insurance information
  • Policyholders
    • Policyholder InformationInformation for People’s Trust policyholders
    • Make a PaymentHow to make a payment
    • File a Claim24/7 claims support
    • Update InformationUpdate your information
  • Info Center
    • Homeowner’s AcademyArticles about home insurance
    • Q&A LibraryAnswers to frequently asked questions
    • CareersLaunch your career with People’s Trust
    • NewsroomView our latest news
    • Contact UsHow to contact People’s Trust
    • Hurricane Planning HubNeed-to-know hurricane info
  • About Us
    • Simply a Better WayLearn about our unique approach to protecting your home
    • Our CommunityWe don’t just insure your home, we live here too!
    • Executive TeamMeet our executive leadership team
    • Financial StrengthFinancially strong for when you need us most
    • People’s Trust ReviewsReviews from current policyholders
    • CareersLaunch your career with People’s Trust
    • People’s Trust TestimonialsTestimonials from current policyholders
  • GET A FREE QUOTE
Select Page
  • Customer Login
  • Agent Sign In
  • Insurance
    • Insurance ChoicesLearn about Florida homeowner’s insurance options
    • Flood InsuranceInformation about flood insurance in Florida
    • Insurance TermsInsurance Terms Glossary of terms
    • Buyers Guide HubHome insurance buying info
    • Discountsavailable discounts on home insurance
    • Homeowners InsuranceTraditional home insurance information
  • Policyholders
    • Policyholder InformationInformation for People’s Trust policyholders
    • Make a PaymentHow to make a payment
    • File a Claim24/7 claims support
    • Update InformationUpdate your information
  • Info Center
    • Homeowner’s AcademyArticles about home insurance
    • Q&A LibraryAnswers to frequently asked questions
    • CareersLaunch your career with People’s Trust
    • NewsroomView our latest news
    • Contact UsHow to contact People’s Trust
    • Hurricane Planning HubNeed-to-know hurricane info
  • About Us
    • Simply a Better WayLearn about our unique approach to protecting your home
    • Our CommunityWe don’t just insure your home, we live here too!
    • Executive TeamMeet our executive leadership team
    • Financial StrengthFinancially strong for when you need us most
    • People’s Trust ReviewsReviews from current policyholders
    • CareersLaunch your career with People’s Trust
    • People’s Trust TestimonialsTestimonials from current policyholders
  • GET A FREE QUOTE
  • GIVE US A CALL (561) 609-1000
  • (561) 609-1000
  • GET A QUOTE
  • CUSTOMER LOGIN
  • AGENT SIGN-IN
  • Celebrations
  • Florida Insurance Industry
  • Home Care
  • Household Finance
  • Insurance Online
  • Weather Preparation
Homeowner’s Academy
This is your guide to interesting facts, tips and general homeowner information. We hope you find the information useful – and feel free to share with friends!

Do You Have to Have Homeowners Insurance?

by Guylaine Cadorette | Feb 17, 2021

You don’t have to have homeowners insurance. With increasing monthly premiums, forgoing a home insurance policy may seem like a simple way to reduce the overall costs of homeownership. And if you’re able to pay for your home upfront in cash or have completely paid off your mortgage, you can avoid purchasing homeowners insurance altogether.

Though not required, you may still want to take the time to find the right home insurance policy for your needs. Your house is likely your most valuable asset, and homeowners insurance will help you protect it. Before you commit to going without it, here’s what you need to know about the potential consequences of not having home insurance:

Is It Illegal to Not Have Home Insurance?

You can legally own a home without obtaining homeowners insurance. Unlike car insurance, which is a legal requirement in most states, no state or federal laws require you to insure your home. That being said, you may still have to obtain home insurance–not because of the government but because of your mortgage lender.

Your lender is, essentially, investing in your home with you, and they will want to protect their investment. When you’re looking for a loan or refinancing your home, you may be asked to provide proof of homeowners insurance before getting approved for funds. Depending on where you live, your lender may ask you to purchase additional policies, such as flood insurance, as standard home insurance policies do not typically cover these events.

According to the Consumer Financial Protection Bureau, your mortgage lender is allowed to buy home insurance on your behalf and charge you for that cost. You may not like the policy they pick, though, as it could be more expensive or offer less coverage than what you would purchase yourself. This could quickly drive up the cost of your monthly mortgage payments without giving your home the protection it needs.

What Happens If You Don’t Have Home Insurance?

Not having home insurance is akin to gambling with your house. You’re betting that nothing bad will happen to your property. Still, many things that can damage your house — like theft, vandalism, and natural disasters — are entirely out of your control. If you’re fortunate, nothing will happen. But if you aren’t, you could face serious consequences, including:

  • Unable to make repairs: Natural disasters can cause significant damage to your home and property. You can do your best to prepare for some disasters, such as hurricanes, but others, like earthquakes and wildfires, can come swiftly and escalate with little warning. Homeowners insurance can help you pay for repairs or in extreme instances, cover the cost of rebuilding or purchasing a new home. Without that protection, you could have to spend thousands, if not hundreds of thousands, to repair or rebuild your house.
  • Vulnerable to legal action: You can be held liable for any accidents that occur on your property. If a child gets hurt while playing in your yard, your dog bites someone, or a visitor slips on your slick walkway, the injured party could sue you. This leaves all of your assets, including your home, vulnerable. Most homeowners insurance policies offer some liability coverage to protect you should anything like this happen on your property.
  • Loss of valuables: Theft and burglary are the two most common property crimes in the United States. If a burglar breaks into your home, you may lose precious items that have either monetary or sentimental value. Depending on the extent of your home insurance coverage, you may be compensated for the loss of any expensive items. If the burglar damages your property during the break-in, your homeowners insurance may also cover the cost of any necessary repairs. Without home insurance, you have to pay for these expenses on your own.
  • Foreclosure: You could end up losing your home. If you haven’t been paying your monthly insurance premiums or cancel your policy after getting approved for your loan, you may be asked to pay what you owe or buy a different policy. And if you can’t or won’t do either, you’ve violated the terms of your loan. In this case, your lender has the legal right to put your loan in default or foreclose on your home.

None of these events are guaranteed to happen. You may experience one of these events and come out of it relatively unscathed. If something does happen, you could have to deal with the financial fallout for years to come. It will likely cost you far more than a homeowners insurance policy would.

Why You Need Home Insurance

Even if you aren’t legally required to obtain homeowners insurance, at the end of the day, you still need it if you want to protect your most valuable asset adequately.

What’s more, homeowners insurance offers protection to more than just your house, including:

Protect Your Belongings

Your home is more than just a house; it’s where you keep your prized possessions and the things you need to live your daily life. If these items are stolen or damaged, replacing them can be stressful and costly.

Luckily, your personal belongings are also covered by your home insurance policy. You may not be able to get your items back, but at the very least, you will have the funds to replace them. Like your bike or laptop, some valuable items are still protected under your home insurance policy when stolen or damaged outside your house.

The extent of that coverage depends on your policy, but every little bit helps. Further, you may get a discount on your contents coverage by installing security upgrades, such as cameras or an alarm system. As a bonus, these relatively simple upgrades may also increase the value of your home.

Protect Yourself

Home insurance protects you and other household members from potential litigation, as most policies have some amount of personal liability coverage. This coverage means that you are protected if you damage someone else’s property, injure or harm someone, or are otherwise found to be legally responsible for an incident at your home. It may cover everything, but depending on your policy, it could help pay for medical bills, legal costs, repairs, or replacement items.

Protect Your Peace of Mind

Homeowners insurance can help protect your peace of mind. You can’t avoid a natural disaster or prevent a robbery, but you can prepare to deal with these events if they do occur. By purchasing a comprehensive policy from a trusted insurance agency in your area, you will have the support and protection you need if the worst does happen. That peace of mind is well worth the cost of homeowners insurance.

Ultimately, homeowners insurance may not be legally required, but it’s probably something you’ll want to have to safeguard your home, your finances, and your family.

Our Story

 

People’s Trust Insurance has created a better way to deliver Florida homeowners insurance protection to Floridians. Built on preparedness and rapid response, our unique approach provides the greatest value and a simplified recovery experience for our policyholders.

 

People’s Trust Insurance
18 People’s Trust Way
Deerfield Beach, FL 33441-6270

Policyholders

  • Policyholder Information
  • Make a Payment
  • File a Claim
  • Update Information

Info Center

  • Homeowner's Academy
  • Newsroom
  • Q&A Library
  • Contact Us

Insurance

  • Insurance Choices
  • Homeowners Insurance
  • Flood Insurance
  • Insurance Terms
  • Buyers Guide Hub
Better Business Bureau Accredited Business
member of faia
Enterprise Award Winner

© Copyright 2025 | People's Trust Insurance Company | Terms of Use | Privacy Policy