Do I need insurance if my condo is paid off?

Yes, to protect your investment and personal property, even without a mortgage requiring coverage.

Even if your condo is paid off and you don't have a mortgage requiring you to hold insurance, having insurance is still very important. Without a mortgage, you might think you're free of needing such financial safeguards, but your condo represents a significant investment. Insurance can protect you from risks like fire, theft, or water damage, which can result in significant out-of-pocket costs. Plus, insurance offers liability coverage in case someone gets injured in your property and decides to sue. This way, you’re not just protecting the physical space and your belongings, but also your financial future.

Imagine you’ve paid off your condo and decided to skip on insurance to save money. Two months later, a pipe bursts in your ceiling during the night, flooding your living room and damaging the floors and your costly electronics. Without insurance, the entire cost for repairs and replacements falls on you, leaving a hefty, unexpected bill.

Although it might be tempting to drop your insurance once your condo is paid off, it's wise to maintain it. Consider various insurance providers to ensure getting the best coverage for your needs and budget. This way, you can rest easy knowing your investment is protected and avoid unexpected financial strains in case of damage or accidents.