Why Is Homeowners Insurance Needed? 
Home owners insurance is needed because of the mortgage . Any lending company wants to protect their investment -LRB- mortgage -RRB- if something happens to the person who owns the home . Think about it for a second if your lending someone 200,000 to buy a house and the house floods or burns down than you could lose your money . Bottom line it 's all about protection assets . The real question is if you have home owners insurance when is the last time you used your deductible . If you have n't used your deductible in years than you should review how much your paying . If you have a low deductible than your paying too much , switch to a high deductible get savings and put that money towards paying off debt or increasing your savings . This works as long as you have not needed to use your deductible . Ask your self this , is that money better off in your pocket or the insurance company ? 