Do I need to keep homeowners insurance even after I pay off my house?

Paying off your house is a dream come true for many. Your home is usually your biggest investment and your most valuable asset. When your mortgage is new, you may even have to pay special mortgage insurance until you pay off a certain percentage. Homeowners and mortgage insurance may be requirements of your lender or government programs that finance your loan.

But do you need to continue to pay for homeowners insurance on your Gahanna, OH after your mortgage is paid off? We at Schneider Insurance Agency want to help you understand your risks so you are comfortable with your level of protection.

Here are the main reasons you should continue to protect your home with homeowners insurance:

  1. Your home is still vulnerable to the same risks you were vulnerable to before. The difference is that you no longer share an interest with your mortgage holder. If something happens, you are 100% responsible.
  2. Your homeowners’ policy provides protection against lawsuits. Liability insurance is included so if someone comes onto your property and gets injured, your insurance will pay. Homeowners insurance typically pays for your legal representation in these cases too.
  3. If your home is destroyed or temporarily unlivable, you might not have a place to stay while waiting for repairs or rebuilding. Homeowners insurance can pay for temporary housing and will even cover additional expenses, such as the added cost of eating out. 
  4. Maintaining homeowners insurance gives you the peace of mind you need to live comfortably.

Reach Out To Us

Protecting your Gahanna, OH home is probably one of your top priorities. You need a safe home for yourself and your family. If you have any questions or if you want to make sure you are comfortable with your current level of protection, please call Schneider Insurance Agency today.