*Loan,banking and credit>>>homeowner insurance

Is homeowners insurance required by law?

There is no mortgage company, it's private property, solely owned in Michigan.

No. the only people who require homeowners insurance is the bank or mortgage company to cover the mortgage if anything happens to the property.

grips hit the nail on the head but also, you really need to have that policy if you own your home outright as well. Think about it.... if there's a fire or flood, whatever, you lose everything.
You are taking the chance of losing it all if you are sued.
No, you are "self-insured". However if I were you I would still get some kind of policy. If someone gets injured on your property you can be held legally liable.

Do you have 30,000 dollars lying around?
You can drop your insurance rates by refinancing with a B lender. Most of the time the original mortgage is loaded up with things like flood and hurricane insurance, while you live in a State like Indiana. You have to know what your purchasing in the first place, and taking a mortgage contract to a title lawyer is always recommended. Lenders will rip you off from the get-go if your uninformed.