Protect your assets
Homeowners insurance covers the structure of your home and personal property. In addition, it also protects you from personal legal responsibility to other or their property while they are on your property.
Satisfy your mortgage lender
Mortgage lenders typically require you have insurance as long as you have a mortgage and list them as the mortgagee on the property. If you let insurance lapse, your mortgage lender will likely have your home insured.
This policy may have a higher premium and coverage will be limited to damage to the structure of your home compared to a policy you buy on your own.
The lender can require you to pay this higher premium until you purchase your own homeowners insurance again.
For additional information on homeowners insurance, visit NAIC's homeowners insurance page.
