If you’ve paid off your mortgage or bought a home in cash, you might be wondering—is it smart to go without homeowners insurance? While it’s not legally required in most states, skipping coverage is a high-stakes gamble that could cost you far more than you think.
Let’s explore why having homeowners insurance isn’t just smart—it’s essential.
🔥 One Disaster Can Destroy Everything
Your home is likely your largest investment. Without homeowners insurance, you’re on the hook for 100% of the cost to rebuild or repair after:
- Fires or smoke damage
- Windstorms or hail
- Theft or vandalism
- Burst pipes or water damage
- Lawsuits from injuries on your property
Disasters happen—even to careful homeowners in “safe” neighborhoods. The right policy ensures you don’t lose everything when the unexpected occurs.
🏦 Your Lender Will Require It
If you have a mortgage, your lender requires homeowners insurance to protect their financial interest. If your policy lapses, they’ll likely purchase force-placed insurance—a more expensive, less protective policy you’ll still have to pay for.
💡 That means you’re paying for insurance—without getting any real benefit.
đź’ˇ Going Without Is a Risk, Not a Savings
Some homeowners think skipping insurance saves money, especially if they’ve never had a claim. But even a minor incident can turn into a major bill:
- A guest slips on your stairs and sues you
- A kitchen fire causes smoke damage throughout the home
- A tree falls on your roof during a storm
Without insurance, you’re paying out-of-pocket for every repair, lawsuit, or replacement.
đź’µ Homeowners Insurance Is More Affordable Than You Think
In Sacramento and throughout California, the average monthly premium for home insurance is around $100–$130 depending on your home’s value, age, and location. For the price of a streaming subscription or a nice dinner out, you can secure full protection for your property and belongings.
🛡️ More Than Just the House
Homeowners insurance also includes:
- Liability coverage for accidents or injuries on your property
- Personal property protection (furniture, electronics, clothes)
- Loss of use coverage if your home becomes unlivable and you need to rent elsewhere temporarily
That’s a lot of value packed into one policy—and peace of mind you can’t put a price on.
🏡 Final Thoughts
Is it smart not to have homeowners insurance? In most cases, absolutely not. Even if it’s not legally required, the financial risks are too great to ignore.
At Eugene C. Yates Insurance Agency, we specialize in helping homeowners in Sacramento and across California find affordable, reliable protection—no matter your situation or home type.
đź“ž Contact us today for a free, no-obligation quote and expert advice from local agents who understand your neighborhood and your needs.