Paying off your mortgage feels like freedom—and for many homeowners, that milestone raises a new question: can you cancel your home insurance once the house is fully yours? Technically, yes. But practically speaking, it’s almost never a good idea. Home insurance isn’t required by law, yet it remains one of the most valuable protections you can keep in place, even after the bank no longer demands it. Learn more from the professionals at Max Insurance, LLC serving Des Moines, IA and surrounding areas.

What Changes When the Mortgage Is Paid Off

When you still owe money on your home, your lender requires proof of insurance to protect their financial interest. Once the loan is paid, that requirement disappears. At that point, you can legally cancel your policy. However, doing so would leave you responsible for any future damage—whether it’s from fire, theft, or storm loss. Without coverage, rebuilding or replacing belongings could quickly drain your savings.

Even if your home is fully paid for, it’s still exposed to risk. Weather, accidents, and unexpected events don’t stop after the mortgage is gone. Maintaining coverage means you’ll still have financial help if something happens to the property you worked so hard to own.

Adjusting, Not Canceling, Coverage

Instead of canceling, it’s smarter to review your policy and adjust it to your needs. You may be able to lower coverage amounts if your replacement costs or liability risks have changed. Increasing your deductible can also reduce your premium while keeping protection intact.

You can also explore discounts for long-term ownership, home security upgrades, or bundling with auto insurance. Your insurer or agent can help balance coverage and cost based on your current situation.

Owning your home outright is a major achievement—keeping it protected ensures that milestone stays secure. Even without a mortgage, home insurance remains a safeguard worth keeping. Contact your insurance rep at Max Insurance, LLC, serving the Des Moines, IA area, to learn more.