What are the necessary circumstances where I absolutely need to have home insurance, and what are the risks of not having it?

Homeowners insurance is not legally required by federal or state law, but it's often a requirement for mortgage lenders to approve a loan.

According to the Federal Housing Administration, lenders may require insurance as a condition of loan approval, even if you're paying off your mortgage early or renting out your home.

Homeowners insurance covers not only damage to the structure of the home but also personal belongings and liability for accidents that occur on the property.

The average cost of California homeowners insurance is $1,452 per year for $300,000 in dwelling coverage.

Flood insurance and earthquake insurance are available separately, and in hurricane-prone states, you may need windstorm insurance.

Liability insurance, which covers accidents that occur on your property, is typically between $100,000 and $500,000, but you can buy umbrella insurance for additional coverage.

If your assets exceed $500,000, you may need to consider umbrella insurance, which offers coverage of $1 million or more.

Homeowners insurance generally doesn't cover damage from water pipes, which can be a surprise to first-time homeowners.

Homeowners insurance policies typically cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others.

Homeowners insurance is often required by mortgage lenders, and the cost is usually included in your mortgage payment.

Even if you're not required to have home insurance, having it can provide financial protection and peace of mind for homeowners.

Homeowners insurance can also cover accidental damages and natural disasters, providing an added layer of protection for homeowners.

Homeowners insurance may be required by lenders, even for those who are paying off their mortgage early or renting out their homes.

Homeowners insurance can cover the cost of rebuilding your home if it's destroyed, which is known as the replacement cost.

The cost of home insurance varies by location, with areas prone to natural disasters or with higher crime rates typically having higher premiums.