Having a friend as a roommate

[Venkat Dabri]

Hello,

One of my good friends have moved in as a roommate. I have known her for many years and don't have a lease signed with her but she pays me rent on time. I was wondering as to is having a lease very necessary? I am not super concerned about her not paying rent since if she is in financial difficulty I would like to help her out. However, in case I do have to ask her to leave do I have any disadvantage in case I don't have a lease? I assume normal tenant's right of having a 60 day notice will be needed and I have no issue with that. Also will this be a problem with my home insurance in anyway like if she burns down the house will this be a problem with insurance. Or if she falls down a flight of stairs can her insurance sue me etc.?