Unless individuals have more money than they know what to do with they should probably insure their home. A home insurance policy is generally required if an individual has a loan or mortgage, lives in a flood zone or is someone who worries about losses. Insurance is very affordable and everyone should always insure their home in the event of an unforeseen loss.
Usually, anyone who owns their own home more often than not has some type of home loan or mortgage that they need to pay off. All major banks and mortgage originators require a home owner to carry and pay for a home insurance policy on their home. They also are required to pay what is called mortgage insurance to their mortgage company. The reason banks and mortgage companies require insurance is that in the event of a total loss the bank or mortgage is not on the hook for the entire amount of the loan. This is to insure that an individual intends to live and stay in the home.
Any home owner that lives in a flood plain is usually required to buy and maintain flood insurance. This can be mandated by a local ordinance, bank or mortgage company. Flood insurance is separate from the regular type of home owners insurance that is purchased by a home owner. Flood insurance may be required for a home owner if they live relatively close to a river or lake that could possible flood and rise over its banks. Flood insurance is provided by the federal government by can usually be purchased through many insurance companies.
If you are a home owner that worries about losses that can occur to your home you are probably gong to purchase home insurance. Even the richest of people still buy insurance. The single most important reason, even if the dwelling is not important, is for the liability. No one wants to risk getting sued because of an accident. Even though the affluent can and do pay for their own attorney the insurance company will generally cover legal costs. Why go without insurance when there are so many benefits to having a home insurance policy.
Losses can happen to anyone so why not have an insurance policy on your home just to be prepared for the unexpected. That is the whole purpose of what insurance is for anyway. It provide coverage for unforeseen losses that can and do sometimes occur. It would cost more in the long run to own a home without insurance than it would just to buy and maintain a policy.