I not only would encourage everyone to have insurance on their home. Infact, I'd suggest you sit down with your agent, and review your policy. Tons of things you need to consider. Probably the most important thing would be contents. If you live in a 2500 square foot hous, more likely than not you have well over $100,000 in contents. People here that, and think no way. Trust me, you've got a pile of stuff in your house. Furniture is just the tip of the iceberg. I had a catastrophic claim in 2006. Not sure what I would have done without insurance. My house was the only thing I felt like I came out ok on. I had 70% replacement of contents. Meaning for every dollar the insurance company paid me for my home, I was entitled to 70 cents on contents. You'll get a check for half the value of the items in your house. When you actually replace the item, you'll get the other half. Also look at what I'll call a replacement rider. I'm not sure what the actual name of it is. It makes sure your insurance policy keeps up with inflation. Your policy adds value to your house each year, and accordingly, your premium goes up. Likely as not if your home has any age on it at all, it's not keeping up with inflation. For instance, I built a nice home in '95 for $36.75 a square foot. To replace that home in 2006 cost about $80 a square foot. My policy hadn't kept up with inflation. Luckily , I had the rider. I would have been royally screwed without it.