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Question for the Money Doctors

Question submitted on Apr 4, 2014.

Question

I own my home. May I purchase insurance for fire and liabilty only?

Answer

If you own your home and do not have a mortgage on it, you aren't even required to have insurance for fire and liability. However, if there is a mortgage on your home, your mortgage company will require fire and liability insurance to protect their rights.

For the same reason that the mortgage company requires a homeowner to have property and casualty insurance and liability insurance, you should carry these types of coverage.

If you are asking whether or not you should carry some type of term life insurance to pay off your mortgage should you die before it is paid off, there are better policies that you might want to investigate.


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