If you are a homeowner in Palm Beach County, Florida, you may be wondering: is homeowner’s insurance mandatory? The short answer is no, Florida state law does not require you to carry a homeowner’s insurance policy. In other words, if you own your home outright without a mortgage and are comfortable taking on the potential risks yourself, you can choose to go without it.
Why Homeowners Still Often Have It
Even though it’s not legally required, there are practical reasons why nearly all homeowners carry coverage:
- If you have a mortgage, your lender will require you to maintain homeowner’s insurance. Failing to keep it could breach your loan terms. If you lose coverage while having a mortgage, your lender may force a policy and charge you, often at a significantly higher cost and with less favorable terms than a non-forced policy.
- Without insurance, you are entirely responsible for paying to repair or rebuild your home if it suffers damage from fire, wind, theft, or other perils. In Florida, where storms and hurricanes are a known risk, it makes sense to have coverage.
The Bottom Line
You are free under Florida law to own a home in Palm Beach County without a homeowner’s insurance policy. But “free” doesn’t mean “wise,” especially in a region prone to storms and damage. If you have a mortgage, you will not have that freedom and instead will be required to carry insurance. Even if you do own the property without a mortgage and are considering forgoing property insurance, it’s recommended to carefully weigh the risk of self-insuring (i.e., setting aside your own funds) versus the cost of an insurance policy.
Shopping for homeowner’s insurance in Palm Beach County, Florida requires extra attention because of the region’s unique weather risks, construction costs, and insurance market dynamics. Since the first time you will be purchasing an insurance policy is when purchasing your home, a responsible title agent will make sure it will be paid prior to or at closing without issue. If you are escrowing with a lender, make sure they are making payments on time because lapses often carry hefty penalties.
When choosing the Law Office of Donna Hearne-Gousse, P.A. for your title, escrow, and closing needs, you’ll enjoy all the benefits of an attorney-based title agency with similar and in many cases lower rates than a standard title company will charge.
The Law Office of Donna Hearne-Gousse
(561) 582-5670