By law, anybody who gets behind the wheel has to be insured. But is there an equal obligation for homeowners to take out a House Insurance policy for their property?

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The short answer is no. There is nothing in law to say that a property owner must take out a house insurance policy. Even so, having an insurance policy in place can be imposed as a condition for mortgage approval by lenders. With adequate cover in place, the lender knows that the borrower’s insurance policy would fund the cost of the rebuild should the home be destroyed.


For this, a borrower would only need to take out buildings insurance which, together with contents insurance, forms a typical house policy. Therefore, you do not need to have contents cover on a policy while you are paying off your mortgage loan.


I own my house outright – can I get rid of House Insurance?

Those fortunate enough to own their home outright either by paying off their mortgage in full or buying their home without having to take out a loan have the choice to not have house insurance. That said, we highly recommend that you should have both buildings and contents cover for your property even if you are not legally obliged to. The cost of insurance is a small price to pay for peace of mind knowing that your buildings and its contents are covered against events such as accidental damage, theft and fire.