CHARLOTTE, N.C. — Most homeowners know the importance of insurance, but according to Forbes, depending on where you live, your insurance could cost well over $1,000 annually.
In a time when everyone is asking "where's the money," Money said more people are considering forgoing coverage to save money. But experts stressed this plan could actually backfire.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
Home insurance is technically not legally required anywhere in the U.S. However, a vast majority of homeowners have a mortgage and almost all mortgage lenders require homebuyers to maintain home insurance coverage as part of the loan terms.
So what happens if you don’t have home insurance?
- Forced coverage: According to the Consumer Financial Protection Bureau," if your mortgage lender requires you have homeowners insurance and you choose to ignore that, the mortgage company can take out a policy on the home and charge you for it anyway.
- Facing disasters on your own: It may sound obvious, but if you ditch home insurance and your home is damaged by a tornado, hurricane or other disaster – you’re financially on your own – money dot com says many low-income earners are the ones trying to skip out on insurance to cut expenses – but says this plan could prove counterintuitive.
- Costly bills and no coverage: Aside from natural disasters, homeowners insurance typically covers personal property loss and injuries on your property. So let's say someone sues you for an injury they got in your front yard or a thief steals your expensive electronics, you may end up footing the bill if you don’t have homeowners insurance.
WCNC Charlotte's Where's The Money series is all about leveling the playing field in the Carolinas by helping others and breaking down barriers. WCNC Charlotte doesn't want our viewers to be taken advantage of, so we’re here to help. Watch previous stories where we ask the question “Where’s the Money” in the YouTube playlist below and subscribe to get updated when new videos are uploaded.