Should I drop my homeowners insurance if my home is paid off?

You’ve finally paid off your mortgage loan. That’s a significant monthly expense eliminated from your budget. But now you’re wondering if you should eliminate one more expense and drop your homeowners insurance.

The answer? Definitely not.

Homeowners insurance protects you in case your home is damaged or destroyed. This doesn’t change even if you have paid off your mortgage loan.

Consider this: What if a fire destroys your home? What if high winds sends a tree through your home’s roof? Can you afford to repair this damage even without the financial burden of a monthly mortgage payment? If the answer is no, then you can’t afford to eliminate your homeowners insurance.

This insurance, after all, will cover the damages suffered by your home. Serious home repairs can devastate your finances if you do not have the protection provided by homeowners insurance.

The good news is that you can save money on homeowners insurance by shopping with your local independent insurance broker. These brokers can instantly access live quotes from the country’s biggest insurance providers. You can then study these quotes to determine which homeowners policy best fits your current needs.

You can also tweak your homeowners insurance. You might want to lower your coverage depending upon how long you’ve owned your residence and how much of your mortgage loan you’ve paid off. Again, you can meet with your local independent insurance broker to make these arrangements.