Are There Penalties For Not Buying Home Insurance?

home on a hill

The laws around auto insurance are simple, you need to have it to legally drive on the road. Home insurance isn’t quite so black and white. There are technically no laws mandating that you must have homeowner’s insurance. While it might feel good not to have that insurance bill pop up each month, there are plenty of much more expensive risks that you are opening yourself up to. Read on as Capital Insurance discusses the penalties and risks that exist for homeowners without insurance.

1. Your Mortgage Depends On It

Mortgages will contain legalese that requires you maintain homeowners insurance. If you decide to drop your insurance coverage, it is grounds for your bank to initiate foreclosure on your home.

2. No Lawsuit Protection

All homeowners open themselves up to the possibility of a lawsuit. Dog bites, slips, and falls are all pretty common and can sometimes result in a lawsuit. Your home insurance would cover legal fees up to your policy limit, however; without home insurance, all these costs would fall directly on your shoulders.

3. Liability

As a homeowner, you are liable for any injuries sustained on your property if it can be proved that you practiced negligence in the matter. Legal fees aside, the potential rehabilitation cost of a serious injury is sometimes enough to bankrupt an owner.

4. Repairs

Living without home insurance means you are on the line for all home repairs. While paying to replace the shingles or siding might not sound that bad, you could find yourself in a tough spot if your house sustains major damage due to a fire or storm and you don’t have the funds to repair or rebuild. A home insurance policy would cover repair costs, and depending on your plan, may also cover temporary living costs if you find yourself unable to live in your home for the time being.

CLICK HERE to start a free, no-obligation online home insurance quote. Or, call one of our live agents at 780-476-1600 or toll-free at 1-877-476-1601


Many homeowners make the mistake of assuming bad things won’t happen to them. This thinking might give them a false sense of security and allow them to believe they might be fine without home insurance. Don’t fall into this trap! While we always hope not to have to use our home insurance, if disaster strikes, having the proper protection in place will make your life a whole lot easier!

Capital Insurance Brokers will help you find the right home coverage at a competitive price. Get started on your home insurance quote today!