Myth: Drop your insurance after the mortgage is paid

When we get financing to purchase a home, The Lender requires to get Homeowners’ Insurance. Now when the mortgage is paid off, is it better to drop the insurance? When some Investors buy a property for cash, they also think not to have insurance. Regardless, you really can’t afford to not have insurance. We are in South Florida, we get hurricanes and property can get substantial damage. Also, the damages with plumbing or electrical can be very expensive. So, the purpose of having insurance is not because your Lender enforces it. You need to have insurance to protect your home, your biggest asset.