A. If you are purchasing a home with a mortgage, the lender will require that you maintain homeowner’s insurance on the property. A paid homeowner’s insurance policy (or a paid receipt for one) is required at closing, so arrangements will have to be made prior to that day. If you pay cash or have paid off the home, your decision to obtain or maintain a current home insurance policy is up to you. If you choose to let your policy lapse, you will have no coverage pertaining to any loss that may occur on your home.
