Do You Need Homeowners Insurance?

Your home is likely your most valuable asset. Insurance coverage on your house is important. Without such insurance, your house may be one tragedy from being lost forever with no compensation.

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In this video, you will learn what a financial expert has to say about homeowners insurance.

In this episode of the Ramsey Show, Eliza calls in from Florida. Her husband had passed away and she is now in control of the finances. She says that her house is paid off, and is wondering if it is worth keeping homeowners insurance. One of her friends seems to think that canceling the insurance is a good idea, but Eliza is not so sure. However, she says that she lives only a few blocks away from the fire station. Even so, Dave says that it is always worth having insurance coverage on expensive assets such as houses, cars, and boats. Additionally, he says to call the bank and have them cancel the equity line that is currently in place. Finally, he also suggests buying liability insurance. Liability insurance is the best buy you can make with your money in the insurance world. Several hundred dollars can cover millions.