Canceling your homeowners insurance, even if you haven’t used it for a long time, is potentially a very risky decision with major ramifications for your future. The liability protection your insurance provides, for example, can protect you from a crippling financial blow if someone sustains an injury on your property for which you are liable. Additionally, if any of your property is damaged, you may be unable to afford repairs needed. Worst of all, your mortgage company might even be able to initiate foreclosure if you don’t have homeowners insurance.
- Many home owners know the importance of having coverage on their homes but when they have not had a claim for a number of years, they cancel it.
- When there are third party injuries and property damage on a property, the personal liability coverage covers it and helps you if you are sued.
- Home owners coverage helps to pay for repairs or damages to property that might occur and if one lacks this coverage, he pays out of his own pocket.
“But what happens when you cancel your homeowners insurance? Here are some of the possible outcomes of forgoing this essential coverage.”