There are many expenses that go along with homeownership. And aside from the upfront costs of buying a home, there are also additional monthly expenses that can quickly add up. With so many costs facing new and prospective homeowners, many find themselves looking for areas where they could cut back. But what about insurance for your home?

Do you need home insurance? Technically, no. You don't. The law does not require you to have homeowners insurance. But even if you aren't legally obligated to get home insurance, you might find that purchasing a home is next to impossible without it.

Mortgage companies almost always require that you purchase homeowners insurance before they will agree to extend a loan. This is because home insurance helps protect their investment, providing funds to repair or rebuild the property if it gets damaged. Without the safety of homeowners insurance, your lender's several-hundred-thousand-dollar investment could be in danger, and that's a risk they simply are not willing to take. So, unless you pay cash for your property or inherit a house that's already fully paid off, you're going to need home insurance.

If you're still asking yourself “Why do I need homeowners insurance?” then consider that it protects you and your family just as much as it protects your mortgage company. How much of your finances are tied up in your home? What would happen if your home were destroyed, along with all of the possessions you keep inside it? Would you be able to financially recover from such a loss?

Homeowners insurance is not something you need, but it should be something you want. With the right coverage in place, you have a safety net to fall back on when your property takes a hit. This is why even after your mortgage is paid off, you will probably want to continue paying for home insurance.

Homeowners insurance helps safeguard you, your property, and your belongings, so that the money and time you've invested in your home doesn't go to waste.