#7 Opting Out of Insurance

#7 Can I just gamble and skip insurance?

You may not have that option if your home is listed as collateral on a loan, most commonly, a mortgage.  It is also financially very risky, and you need to consider carefully whether you can afford the financial hit of losing your home and everything in it.

More Details: If you have a mortgage or your house is listed as collateral on another loan, you must carry insurance. Check with your lender if you are unclear about whether your house is listed as collateral and their insurance requirements. Lenders can purchase and charge you for insurance (forced plan insurance) to cover their loan. The cost will usually be higher than if you purchased the insurance yourself. 

If you do not have a mortgage, property insurance is a personal choice. However, be sure you are realistic about your financial loss – both your house and its contents. If you lost everything, would you be able to survive financially?