Do You Really Need Home Insurance?

Homeowners insurance is required by most mortgage lenders, and is included in your mortgage payment.

A young woman considers home insurance in her new home.
(Image credit: Getty Images)

No one buys a home expecting burglary, fires, or flooding. The damage caused by these unexpected events is often an overwhelming expense that could easily drain a homeowners' reserves. That’s why mortgage lenders typically require home insurance before closing on a new home. Long story short, homeowners insurance is required in most situations. Here’s what you need to know:

What is homeowners insurance?

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Seychelle Thomas
Contributing Writer

Seychelle is a seasoned financial professional turned personal finance writer. She’s passionate about empowering people to make smart financial decisions by combining 10 years of finance industry experience with solid research and a wealth of knowledge. Seychelle is also a Nav-certified credit and lending expert who has explored money topics such as debt consolidation, budgeting, credit, and lending in her work for publications including GOBankingRates, LendEDU, and Credible.