Can I just NOT pay for homeowner’s insurance?

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At Ashlar, I firmly b that an educated home buyer or seller is best equipped to make their own decisions. That’s why I take time out of my day each and every day to answer someone’s real estate question.  And, when I think the answer can be useful to you as well, I share it here.  So without further ado:

Question:

Can I just NOT pay for homeowner's insurance?

If you have a mortgage you are almost 100% certain to have a requirement to maintain homeowners and possibly flood insurance if required.

If you cancel your insurance, the insurance company sends a letter to your mortgage company, and they tell you to provide proof of insurance or obtain new insurance ASAP.

If you lapse or refuse, they will force place you onto an insurance policy of their choosing and charge you for the privilege.

If you then don’t pay that they will foreclose on you for not honoring the terms of your mortgage.

If you own the home outright you can elect not to carry insurance, but then everything is on you.

I’d also like to point out that other states that get hit routinely by Hurricanes do not have this insurance problem (Texas, Louisiana, Alabama, Georgia, SC, NC). The solution is in the legislature and enforcement.

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Kyle Sasser

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