What is one primary factor that influences whether homeowners insurance is needed?

The requirement set by mortgage lenders is a primary factor influencing whether homeowners insurance is needed because most lenders require borrowers to secure homeowners insurance to protect their investment. When a property is financed, the lender has a monetary interest in ensuring that the home is protected against risks like fire, theft, and natural disasters. If the home is damaged or destroyed, homeowners insurance helps ensure that the mortgage can still be paid and the lender's collateral is safeguarded. Without this insurance, lenders might perceive an increased risk, which could affect the approval of a loan or result in higher rates.

While the presence of smoke detectors and the overall cost of home utilities can impact insurance premiums or safety ratings, they do not directly dictate the necessity of having homeowners insurance. Similarly, the age of the homeowner is not a primary factor in determining the need for homeowners insurance, as regardless of age, anyone who owns or finances a home would likely need this protection.