Q: Do i need homeowners insurance at closing if its a cash deal?
A: OMG, yes. Well, actually, no. You don't need it. You want it. If the house burns to the ground as you drive away from the closing, whatever is left, including the requirement to clean up and rebuild the eyesore, is yours. If some else burns it down and goes to prison for arson for doing it, they will probably be ordered to pay restitution which will be completed sometime in the next century if they don't die first. County ordinance is likely to force you to fix the problem in a matter of months. The bank is smart enough to require you to buy homeowners insurance in order to use their money. Whoever gave you money to buy in a cash deal -- including your spouse or yourself -- is a fool to let you buy something as big as a house uninsured, and no part of the law will assume you are uninsured if something bad happens.
Ross Cameron Hart agrees with this answer
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