Slammed by the rising price of policies and climate-driven natural disasters, more and more Americans are exposing themselves to risk and forgoing home insurance.
Homeowners insurance is typically quite literally required by the mortgage lender. As in, they will sue you if you don’t maintain the minimum level of coverage, because it’s a material beach of contract. And yes, many do check regularly.
This effectively limits it to people that own their homes outright, or corporate landlords that can self-insure.
In my area, it’s standard to pay for home insurance (as well as property tax) through your lender for the term of your mortgage. A portion of your monthly mortgage payment goes into its own savings account, and they use that account to pay those bills when they come up.
Homeowners insurance is typically quite literally required by the mortgage lender. As in, they will sue you if you don’t maintain the minimum level of coverage, because it’s a material beach of contract. And yes, many do check regularly.
This effectively limits it to people that own their homes outright, or corporate landlords that can self-insure.
In my area, it’s standard to pay for home insurance (as well as property tax) through your lender for the term of your mortgage. A portion of your monthly mortgage payment goes into its own savings account, and they use that account to pay those bills when they come up.