Is Homeowners Insurance Required By Law?
No law requires you to have home insurance as a homeowner. If you own your home without a mortgage, home insurance is an optional purchase.
If you have a mortgage on your home, the lender will require you to get home insurance to protect their collateral. There is a legal requirement on the lender's side that comes from the government to preserve the value of the loan.
What Happens If I Forget to Renew my Home Insurance?
If you have a mortgage on your home and accidentally forget to renew your home insurance, your lender will place forced placed insurance coverage on the house that usually only covers the lender's equity in the home -- not yours. Even though the forced placed insurance is covering the lender's equity - it is charged back to you, the homeowner, via the escrow account. Forced placed insurance is expensive and often priced at 3x the market homeowners insurance rates --it is not in your best interest to keep.
To avoid throwing money out the window, don't let your home insurance expire if you have a mortgage. If you don't have a mortgage and wouldn't blink if your house burned down, you can opt to skip purchasing home insurance.
At your service,