Unlike motorists – who must by law have car insurance – house and condo owners aren’t legally required to have home insurance. However, it may be a requirement in certain situations. For example:

• Mortgaged homes. If you want to take out a mortgage to pay for your home, your financial institution may require you to have home insurance. This helps protect the value of the home and the security of the lender’s loan in case of something unexpected, like a fire or natural disaster.
• Condo or co-op units. If you’re buying a condo or co-op unit, your board may require that you have insurance. You’ll need to double-check with your board, as each is different.

Whatever your living situation, we strongly recommend that you do get insurance because it not only protects your home and the contents inside, it also gives you liability coverage in case you accidentally injure someone or damage someone’s property anywhere in the world. Let’s say you accidentally cause a fire at a hotel you’re staying at and it causes major damage. The liability section of your home insurance policy has you covered.