What if I don't own a house in Life and land on a pay square
I'm not sure what version of the game you are playing.  From Hasboro's rules for LIFE:


  BUYING A HOUSE When you reach this space [the red one that has a stop sign and the words BUY A HOUSE], stop --even if you have
  moves left. Draw 1 House Deed at random from the deck. Pay the bank
  the price on the deed (not the insurance amount; that’s a separate
  transaction). If you’re short on cash, you must borrow from the bank.
  Then spin and move again.


You do have to buy a house.  So if your house was burglarized or destroyed by a tornado, you still have to pay the money.  Note that having a tornado doesn't make you get rid of your house, you just have to pay to "repair" it.