Is Homeowners Insurance Compulsory? 
Home Insurance is NOT compulsory ! If you own a home and are financially secure and independent of any contractual or mortgage obligations , whether you self insure or purchase homeowners insurance is totally an independent decision . Since the purpose of insurance is to spread one 's risk over a large pool of people having the same class of risk , it could be assumed that if one were to have a great sum of assets and wish to underwrite their own risk , in some cases , it may be an advisable task to take . For the average homeowner , a fire , wind , water damage or liability loss could mean absolute devastation and financial ruin . It is well noted in all regions of the country that many retired people choose to discontinue paying for home insurance after their mortgage is paid off , many times , these same people may begin to close an eye to necessary maintenance issues on the home thus causing a fire or jeopardizing the safety of the home to other perils ; many families have been devastated in the course of saving the cost of an inexpensive insurance premium . 