No state legally requires homeowners insurance. But that rarely matters in practice: if you have a mortgage, your lender requires it as a condition of the loan — and even paid-off homeowners are taking a large risk by skipping it.
Why lenders require it
Your home is the bank's collateral. Lenders require you to carry homeowners insurance (with them named as mortgagee) so the asset backing the loan is protected. If you let it lapse, the lender can buy force-placed insurance on your behalf — far more expensive and protecting only them, not your belongings or liability.
What about paid-off homes?
Once the mortgage is gone, no one requires coverage — but a fire or major loss without insurance means rebuilding entirely out of pocket, plus losing the liability protection. For most owners, dropping it isn't worth the savings.
Condos and renters are different
Condo owners need an HO-6 policy (the condo association's master policy only covers the building shell). Renters need renters insurance, which landlords usually require.
The takeaway
Required or not, homeowners insurance protects the largest asset most people own. The real decision is which carrier is cheapest — compare for your ZIP below.
Bottom line: not legally mandated, but mortgage lenders require it and force-place a costly policy if you lapse. Carry it, and compare carriers to get the lowest rate.
Frequently asked questions
Is homeowners insurance required by law?
No state legally requires it. But mortgage lenders require it as a loan condition, and force-place expensive coverage if you let it lapse.
Do I need homeowners insurance if my house is paid off?
Not required by anyone, but going without means rebuilding out of pocket after a major loss and losing liability protection — rarely worth the savings.
What is force-placed insurance?
Coverage your lender buys for you if you let your policy lapse. It's usually much more expensive and protects only the lender, not your belongings or liability.
Do condo owners need homeowners insurance?
Yes — an HO-6 policy. The condo association's master policy typically covers only the building structure, not your interior, belongings, or liability.
Related: Home Coverage Calculator →