If a homeowner does not have homeowners insurance, they may be financially responsible for any damage or loss that occurs to their home or belongings. For example, if there is a fire, the homeowner would have to pay for the cost of repairing or rebuilding their home and replacing any damaged or destroyed belongings out of their own pocket.
Furthermore, if the homeowner has a mortgage on their home, their lender may require them to have homeowners insurance as a condition of the loan. If the homeowner does not have insurance and suffers a loss, the lender may still require them to pay off the remaining balance of the mortgage, even if the home is uninhabitable or has been destroyed.
In general, it is a good idea for homeowners to have insurance to protect themselves from financial losses due to damage or other hazards. It is important to carefully consider the terms of a homeowners insurance policy and to choose a policy that meets the specific needs of the homeowner and their home.