Agency Owner, A1 Insurance LLC, Arizona, California Agency
Great Question. Home insurance is mandatory in California only if you have a mortgage on the house. If you still make payments to the bank on the home they will have you buy home owners insurance and force you to keep it. If your home is paid off then having insurance is a good choice but not required. Good Luck
Home insurance is not legally mandatory in any State including California. If a mortgage contract exists against the home, it is likely that the mortgagee requires at least a basic Fire & Lightning policy on the home to protect the collateral security for the mortgage.
If on the other hand, there is no mortgage, it would not be adviseable for one to take the risk of fire or personal liability alone. One may purchase a Homeowners Insurance policy with a very high deductible thus generating a comparatively much lower rate in order to have coverage should a major catastrophe occur.
Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
No one in California is required to purchase homeowners insurance. A homeowners has the option of self insuring. However a lender will require a homeowner to carry homeowners insurance as a condition of your loan. This is to guarantee the lenders investment is not lost if there is a loss on the property. Once your home is paid off you may do as you wish. However in either case I strongly suggest you protect what most likely is your biggest investment is insurance.
Home insurance is not mandatory in California. But any financial institution that loans you money to buy real property can require you carry HO insurance. If you fail to procure a policy, they will buy one for you and charge you for that.
Also, if your property is located in the flood zone area, the same lender may also require you buying flood insurance.
The only thing I haven't seen required from the Homeowner is an earthquake insurance.
However, we strongly suggest you review you options. Nowadays, with the California Earthquake Authority (CEA) this coverage became much more affordable than before.
If you have a mortgage on your home, usually the lender/mortgagee will require you to have home insurance. Otherwise, it is your choice to whether have it if your house is completely paid off. If you decide not to get insurance, then you will self-insure your house in case anything happens to it. Personally, I don't think it is a smart thing to do even if you can afford to pay fixing the damages and/or even rebuilding your house in case of fire. That's why you want to transfer the responsibilty to insurance companies who have much bigger pocket to pay for that.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
If you own a home you do not need to insure it. If you can sustain the loss of the home through fire or other peril and not suffer any economic setback, then insurance isn’t necessary. If someone sues you for personal injury or property damage and you can take care of the lawsuit out of your petty cash, you don’t need insurance. If you don’t owe any money on your house, you don’t need insurance.
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If on the other hand, there is no mortgage, it would not be adviseable for one to take the risk of fire or personal liability alone. One may purchase a Homeowners Insurance policy with a very high deductible thus generating a comparatively much lower rate in order to have coverage should a major catastrophe occur.
Arizona, California & Nevada free quotes are available online at: http://www.HDAinsurance.com
Also, if your property is located in the flood zone area, the same lender may also require you buying flood insurance.
The only thing I haven't seen required from the Homeowner is an earthquake insurance.
However, we strongly suggest you review you options. Nowadays, with the California Earthquake Authority (CEA) this coverage became much more affordable than before.