Don’t Have Homeowner’s Insurance? 5 Risks You Must Know

Typically when you purchase a home, you get a home insurance policy to protect your investment. Homeowner’s insurance is a policy that provides coverage for your house and your possessions inside your home. It also provides liability coverage that protects you and members of your home for damages and injuries. Homeowner’s insurance often provides coverage for loss-of-use, and other structures on the property. Add additional coverage to your homeowner’s insurance policy to cover expensive possessions, earthquake coverage.

What happens if you do not have homeowners insurance

what happens if you do not have homeowners insurance

What is Homeowners’s Insurance?

While state law does not require every homeowners in Louisville KY to have homeowner’s insurance, there are some situations that require you to purchase a home insurance policy. For example, if you buy a new home that you are making payments on, the mortgage agreement will likely include a homeowner’s insurance policy. In the event of a tornado or fire then your mortgage lender will be repaid for the value of the home. Homeowners Insurance may be required the homeowners association in Kentucky neighborhoods. Homeowner’s insurance provides many benefits to protect your most valuable property asset.¬† Here are some risks that you may face without homeowner’s insurance in Louisville.

You pay out of pocket for Damage to your home if you do not have homeowners insurance

Homeowners insurance provides coverage for damage to the structure or dwelling through specific covered perils or an all risk policy with specific exclusions. If you have a fire, theft, windstorm or hail and do not have homeowners insurance you may responsible for paying for all of the damage out of pocket. The cost of repairing storm or fire damage may greatly exceed the average Kentucky homeowners insurance premium.

Homeowners Insurance

Homeowners Insurance

Your Property Has No Protection

In addition to covering the structure, homeowner’s insurance does provide other coverages for Other Structures, Liability Coverage, Medical Payments coverage, Personal Contents coverage¬† and additional coverages for an extra premium . When valuable items are stolen and you do not have coverage then you will have to replace the stolen items at your own expense. The Coverage A Dwelling coverage provides either actual cash value or replacement cost coverage for the expense of building a replacement home. Coverage C provides personal property or contents coverage. Many homeowners insurance policies also provide coverage for Loss of Use. So if there is a covered loss and the home is deemed uninhabitable by the insurance company then loss of use coverage covers additional living expense while the home is under construction.

You Have No Liability Insurance Coverage

Did you know that if a visitor is injured on your property you may be legally liable? Homeowners Insurance can provide Personal Liability Coverage that may provide coverage if you are legally liable when someone is hurt or injured on your property. Some typical accidents may include a slip and fall accident or if someone is hurt or injured in the home. The homeowners insurance liability coverage may cover legal defense costs that you could incur as a result of judgement for damages.

Your Mortgage Defaults

When paying a mortgage the lender may require you to purchase homeowners insurance. If you fail to pay your monthly homeowners insurance premium then the insurance coverage will cancel. Your mortgage company may purchase homeowners insurance on your behalf and add the additional cost to your monthly mortgage payments. This type of coverage only protect the lender in the event of damage and covered loss to the structure. This type of mortgage purchase home insurance does not provide liability coverage or contents coverage.  Lenders require you to purchase homeowners insurance coverage to protect their financial investment.


We work with many home insurance companies and check rates with many companies. We can even insure you if you have had three water claims in the past 5 years or if you have been cancelled or non-renewed by your current homeowners insurance company.


About Mike Watts

Mike Watts is an independent insurance agent in Louisville KY