Author Topic: Homeowners Insurance?  (Read 1211 times)

Duke03

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Homeowners Insurance?
« on: January 14, 2025, 08:15:15 PM »
I'm in the insurance industry, but this is getting ridiculous.  Don't triple my deductible hence transferring a huge risk to me and then on top of that double the premium!!!  If this continues, I'm serious thinking about going without insurance since our home is paid for and where we live it's actually pretty quiet when it comes to natural disasters.  I've been a homeowner for over 20 years and never had a claim.  With that said does anyone have any recommendations on a non-mainstream insurance company I might be overlooking that actually is priced competitively.  I think taxes and insurance are going to be the cause of the next housing crash.  I seriously don't see how the average person with a mortgage and escrow account can just cover an extra $500 a month when their escrow account recast these higher bills.

LD_TAndK

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Re: Homeowners Insurance?
« Reply #1 on: January 15, 2025, 04:10:57 AM »
Personally, my home value to invested assets ratio is 1:4. To have to replace my home out of pocket would be financially burdensome enough that I'd have to get a job, so I keep my insurance.

Depending on your ratio, or if you're still working and have a high income compared to home value, it might not be too risky to cancel. I doubt many folks fall into this category though.

SilentC

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Re: Homeowners Insurance?
« Reply #2 on: January 15, 2025, 05:25:35 AM »
Where do you live?  I’m mentally preparing to self insure in the future as regulators will likely drive “risk sharing” from high to low areas (ie I’ll be subsidizing log cabin homes in the mountains even though I am far from vegetation and have fire resistant siding and roof tiles).  At some point it becomes a bad bet.  Unfortunately I think pricing is just adjusting to match risk and not really overzealous on the part of insurers. 

ROF Expat

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Re: Homeowners Insurance?
« Reply #3 on: January 20, 2025, 05:19:04 AM »
I don't really need or want insurance to cover the cost of damage to my house, so I have a very high deductible.  Even though I could afford to replace the house, I wouldn't walk away from insurance because I want the liability coverage that comes with homeowners insurance (and my reasonably priced umbrella policy requires that I have my homeowners policy). 

GilesMM

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Re: Homeowners Insurance?
« Reply #4 on: January 20, 2025, 05:34:08 AM »
You should be shopping around for the best deal.  In most states your best bet is a local independent insurance agent who will shop around for you while also answering all your insurance questions.


What will you do for liability insurance if you drop your homeowners?  Self insuring for personal liability could wipe you out in the worst case scenario.

reeshau

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Re: Homeowners Insurance?
« Reply #5 on: January 20, 2025, 10:21:47 AM »
I'm in the insurance industry, but this is getting ridiculous.  Don't triple my deductible hence transferring a huge risk to me and then on top of that double the premium!!!

This is how insurers deal with insurance commissions that don't approve their premium upgrade requests.  Request 200% increase, approved for 100% increase.  Update deductible to make up the difference, actuarily.

Imagine how many people don't catch that factor.  This hidden cost shows what a kabuki dance this kind of regulation is.  Regulate the percent profit, sure.  But let the market determine the price structure.  How do you know homeowners can afford the deductible?  Let them choose.


And, the risk transfer isn't just from high risk to low risk.  When that fails, it's then to taxpayers when FEMA has to step in.