Do I need a deed when my home is paid off?

You have a deed, ( unless the purchase was on a contract for deed) what you need is proof that the loan was paid off, so you can file it with the recorder of deeds to show the lien has been satisfied. The actual deed is filed at the courthouse, what you have would be an approved copy of that deed.

As long as your deed has been recorded in the county clerk or county register's office then you don't need it.

If you just recently paid off your home and you live in a state that uses a deed of trust instrument rather than a mortgage instrument then you will have to get the deed of trust from the lender and have it recorded as solely in your name. Once that's been done and you've confirmed that it's been recorded then you don't need the deed anymore.