No Homeowners Insurance? No Problem
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- เผยแพร่เมื่อ 5 ต.ค. 2024
- With how expensive homeowners insurance has become, especially in the state of Florida, record numbers of homeowners are opting to forego homeowners insurance all together. But is this a smart idea? And what might the outcome of this be?
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20 Million People Can’t Afford to Pay the Electric Bill th-cam.com/video/MP6P8jDGK4M/w-d-xo.html
My gas shot up from $60 to $100. Electric stayed the same at just under $100 in winter. Our city bill (trash, water, sewer) shot up $33, so it's over $100 in winter with minimum water usage. Summer is now $150. Overall increase in expenses for everyone just went up about $500. Last night I spent $290 on groceries, versus what was $235 in 2020. Not a great feeling.
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
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It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
I just looked up Melissa online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals.
How many people feel like the United States of America is one big milking station???
100% the system is designed that you keep working till you're dead. You will never be able to own anything out right, ever. And the cost of living will always go up so you have no choice.
It always has been 🤣 The whole line about land of the free is a straight lie🤥🤣 America immediately went from enslaving people based on color to immediately enslaving people based on money😭 There are lawyers and workers who get paid a lot of $ in order to figure out how to keep Americans in debt; that is how convenience fees were created 😭
"Moo-o-o-o"
I just got screwed by Erie Insurance for loss of a parked utility trailer. I should have stayed with USAA.
America, Home of the Fee
I pay $5000 per yr today (Ft. Laud) and it's estimated to go up to $6500 per yr in 2023 when it renews. When I pay off my mid-century ranch home, hopefully in 5 yrs, I'll self insure. I'll bank the money instead in a stock brokerage account. If there's a disaster, I'll just pay it out of my savings up to $50k which is the money I would have saved over 10 yrs of not paying an insurance co. If the damage is more than $50k, I'll tear it down and build a modern McMansion on it and sell it and take my profits and buy a small home somewhere less expensive. If nothing too bad ever happens, then I will have saved $500+ per month in insurance premium payments over the next 40 years of my life expectancy (40 x 12 x $500 = $240,000).
That is an interesting take on things Sonya. Thanks for sharing that.
That's what I would do.
Sonya once paid off rather than self insurance why not go with a broker choose the amount of coverage you want ps you don't have to insure the value of the home and choose a higher deductible for a cheap annual premium and still have peace of mind a proper liability coverage.
Exactly Sonya. I owned a 100 yr old cottage 3 blocks from the coast in Pinellas Co, my taxes were HIGH! But my (Citizen's only) insurance was even higher. I realized a HUGE % of my property value was the land it was sitting on. I also saw the utter BS insured Floridians go through. No thanks. I've been an uninsured Fla homeowner for 25 yrs. Liability is a vulnerability and I'm going to look into that. BTW, I've applied your logic to my health insurance as well for 35 yrs. The amount of $$ I'd have to cough up out of pocket for either issue would have to be enormous to supercede the $$ I HAVEN'T donated to insurance companies for decades.
@@DylanVBWRX it doesn't work that way. All they want to write is replacement cost insurance. I looked for an agreed value policy and none of the companies would write it
Hey Michael first time commenting
I lived in Brazil for 30 years
Nobody has home insurance down there
My house was flooded 2feet 3 times, we lived on the riverside
The only problem was removing the dirt lol. After the flood the house is like new
Why?
Every house is made of brick and concrete
Home insurance another racket .
This is true history here in Florida 😓. When I buy my home I only pay $600 in 2017 and now is $3,500 in 2023 that is insane right now.
And I bet you never once filed a claim to boot as well.
About the same in Arizona. I am getting ready to pay off the mortgage, then fire my home insurance company.
I've been self insured for 3 years now. I'm up over $10,000. Another couple of years and I will pay for a new metal roof. I would rather spend my money hardening my home than to give it to an insurance company
Paying insurance makes zero sense. It is a business, the possibility of you using the insurance for something higher than what you pay every year is 99.99999% unlikely to happen.
@@lh3428 Source? LOOOOL
I'm strongly considering dropping my home owners insurance. We have a rental town home for a little over 3 years now. Recently some damage occurred to the roof. I had them come out to inspect. They want to charge me over $1,000 for 5 singles to be replaced and a small water sport in the garage. What we have paid in insurance over that time, would have paid for a new roof rather than fight with insurance to do their job. It's a scam.
Just buy liability
A handyman can replace a few shingles and repair the roof leak. Sometimes it's not worth messing with insurance companies over small repairs.
your policy has a deductible. You pay all cost up to the amount of your deductible. Your insurance company doesn't charge you anything. The damage you describe fairly priced will probably not exceed your deductible. You should read your policy and ask your agent questions that occur to you. Your policy is a contract. you signed it. I mean this kindly. practically no one reads their policy before a loss and it is usually to their detriment. understand your deductible, limits and exclusions. deductibles are chosen by you. limits can be raised in most cases, exclusions can be modified by endorsements.
Homeowners insurance is going up because the years there were no storms the CEO's we're getting large million $$ bonuses. So the money was drained out instead of setting aside for the future of a storm. The excuse they use doesn't make sense that it was due to fraudulent lawsuits. How can the same issue be not only in Florida but it is nationwide and worldwide. Look at Australia and other countries as well. When something doesn't make sense it is not the truth. CEOs were getting millions in bonuses but were paid a six figure salary. Think of all the premiums people had been paying yearly and how many homes there are, that is a very significant amount of money and a lot of the majority of homeowners haven't even made a claim in decades. So really where has the money gone that people pay all those premiums all those years.
Basically what you're describing is not an insurance company but a really corrupt and overpaid HOA.
And they probably invested that $ too along the way
Two days ago I dropped my home insurance (St. Petersburg). My home insurance jumped $300 since last year, and my rental house jumped $800 since last year. Something had to give, so I gave up mine. People may want to consider that if they put the money into a special account earmarked for insurance, repairs, etc. and just put that money aside, in a couple of years you will have enough to repair a roof, replace a window or two, etc. In talking with the insurance company she said you can just have liability if that is what you want, and that is about $500 a year. That covers "slip and falls" and falling off ladders, etc. but does not cover the house. That is what I am going to do in June. I am switching my rental house over to "liability only" so the tenants who live there are taken care of. If the house blows away, the lot itself is worth about $190,000, according to local lots for sale right now. The land is not going anywhere, so check your local lots and see what it's worth. With that money you can choose to rent if you want, or you can buy a mobile home. It is a gamble, for sure, but if you have extra money, and you don't care about leaving a lot of it to your kids or whatever, then do what's right for you. I know two people who have no insurance. One of them is relatively poor, and the other one lives in an exclusive area. People are fed up, and the real estate person said, when I asked whether people are dropping their insurance, said, "Oh, yes. About 5%." That is now, and I wonder how many dropped it last year, and the year before and the year before. My friend's insurance jumped from $8,000 a year to $18,000 a year. She got them down to $12,000, but decided to sell her home instead. She downsized into a lovely home, and she said she may just get liability insurance. She's not sure yet.
I own my home too in st Pete! Magnolia Heights Flood Zone X. 2/1 detached garage new roof (because of citizens demands) but now I have to switch to private since their offer fell within 20% rate hike. Now it will be $2500 a year. Kinda upset me. A little scared to go liability only but your lot value makes sense and I have family to help me. Any additional thoughts? House worth $300K…
@@Flfreedom As you probably already know, to drop insurance is only if the property is paid off. Same with liability only. Mortgage companies require full coverage. I don't know what your situation is, so I'm shooting in the dark here. And I am no expert. You are paying over $200 a month just for insurance, not including taxes. I'll walk out on a limb here, though. Take it for what it's worth. I hired a contractor to change a garage (attached) into a mother-in-law apartment. The law in St. Pete is that it must be attached. But yours is not. I have a neighbor who has turned his detached workshop into a small apt., too. It's not legal, but I don't care. They need the extra income, and they keep it rented in their back yard. Is this something that you could do with your garage? You don't need to change the garage door. Just have a private door in the side. That's what mine had. I did change out the garage door and put in a solid wall. But if your garage is plumbed with electric, you may wish to consider it. It will bring in the extra money each month that can help with costs if that is an issue for you. I love seeing the potential in a property, and I hate throwing money at insurance. I think I'm in flood zone D. I'm actually in Gulfport.💗💗
@@yellowbird5411 helllooooo. Yeah I’m mortgage free! lol. Yeah, no I do not care to have renters on site. I was just giving you my specs. I guess in my area I think my house is worth even more but this is my forever home. I bought small so that way it would just be super manageable later on. Funny thing is my neighbor next to me decided to go self insured as well and because he was pissed off that citizens homeowners insurance required that he had to put on a new roof to stay on citizens I kind of feel like I put on a new roof for you guys and then now that they’ve changed the rules and now a private insurance has come in at $25 a year. I know I’m still getting kicked off of citizens where I was paying $2100. Maybe what I need to see is find out upgrade my windows right either that are also get hurricane shutters to fortify my house block home of course I think what’s been great about our neighborhood. Is that the houses on my block? We all have big oak trees in front, and I almost feel like those oak trees, always buffer the wind and protect our homes. Anyway, your post gave me food for thought and maybe this isn’t the year that I should do it but after I beef up my windows and also get some hurricane shutters or hurricane I like those clear hurricane fiberglass shutters that I see people do that way they’re super light maybe or shutter hurricane fabric maybeI just haven’t looked into contractors that do that kind of work. Any suggestions would be greatly appreciated and good luck as our hurricane season comes to an end lol
@@Flfreedom Price for hurricane shutters may make a difference in what you decide to go with. If you are the homeowner you can put the tracks up yourself or have a handyman do it. You don't need a contractor, but you will need to have them inspected. My son (who is on the rental deed) put up the ones on the rental house. It's just a metal track on the bottom and the top of each window, which is permanent (doesn't look bad - you can paint them if you want), then a shutter slides in from the side if you are battening down the hatches. Easy to put up and take down. Anyone can do it. But the size of your windows, too, will make a difference as to whether this style or another one would be best. But those brick and cinderblock homes usually have the smallish size windows, and are standard size. You can look at them online and get an idea of price. Sometimes I think the shutters cost more than replacing the whole window if it shatters. But of course, you have the wind and rain that would come in if that should happen. Upgrading your windows to a higher wind tolerance would also bring you some peace of mind. Do you know what your windows would withstand right now? If you get an estimator out for a free assessment, he should be able to tell you. We're getting a break so far this year with hurricanes, and I'm doing a Snoopy dance!💗
Farm Bureau said I'd have to insure my vehicles with them in order to continue my homeowners with them. I dropped them and turned in a claim for a roof damage at the same time. They paid for the roof and we parted ways. That was a few years ago and I haven't bothered to carry homeowners insurance since.
I appreciate you sharing that story
You can insure yourself to death.
My friend who was elderly had 4 units in a 6 unit building. He owned for a long time. Someone's unit burned down the entire building. He said the HOA was supposed to be paying for home insurance but they didn't have any. So he lost 1 million overnight. I had just paid off my house and was thinking of self insuring but that incident changed my mind. My 1150 sqft house in northeast florida in 1997 was $580 per year...today its $4000 yearly. Lived in my house 25 years only had 1 claim during hurricane Ivan, got 8k for repairs. I have 0 confidence insurance will be solved. Once insurance make this kind of money they'll never let go of it. The Air b&b's and rentals use insurance as general maintenance repair money. So much fraud now because people are corrupt and lawless.
Oh here is another thing that happens here which nobody knows about but i know because I've lived in Florida my whole life AND been through all insurance companies tricks. Most homeowners have had policies canceled 2-3 times. Well the first time they enacted the wind mitigation discounts were back after hurricane Ivan. People paid for inspections and got decent discounts. Well fast forward after 2-3 insurance companies going bankrupt and me being placed automatically into other insurance provider.....the wind mitigation doesn't transfer so those discounts disappear. THEN you have to get reinspected but most roofs are around the 10-15 mark and thats what will fail people. Insurance companies are now instantly changing the rules per customer. So to get lower insurance you need new roof, new water heater, up graded electrical, no dangerous dog, no hot tub, no diving board...etc. etc.
Are you going to quit paying home owners insurance?
@@nowthatsfunny1yep, insurance is no longer worth it. I will take on the risk since they deny claims anyway. 90% of claims initially denied
If you live in a HOA, tell the association manager that you need a copy of the master policy. Be patient. There are many steps. Once you get it, check to see if it’s in force. The policies are for one year. Check to see if it includes walls-in coverage. Get a copy of the HOA’s CC & R’s (Covenant, Conditions, & Restrictions.)
Hi Michael, a friend of mine, owns all his properties no loans all paid. He decided to take the risk and not insure any properties in Miami. If you rent from him, he requests that you have your own renters insurance, before renting the property. For him after living in Miami 25 years and never had any issues is a calculated risk. So no insurance for him at ridiculous prices. I am thinking of doing the same as all my properties are paid off as well. That is the main reason I would never buy condos, in top of lack of privacy, noise and other issues, no interest, you do not own anything then the air in the middle, no thank you.
That does sound quite risky, he has just gotten lucky for sure.
@@MichaelBordenaro Maybe, but all fully paid, no loans. He is very rich, and probably will see it as a opportunity to rebuilt, so I guess he does not care.
Doing the same in central Florida with my primary residence. A single family home.
@@brookyogini6625 yes many people with no mortgage are now doing that. We take the risk, and have the money to rebuild in any case. I decided to follow is steps. The issue is now that many renters cannot get renters insurance either.
@@MichaelBordenaro Well not for us, we do have the money to rebuild, so no issue there. The problem now, is that many renters in Florida can no longer get renters insurance either.
I suspect the number of uninsured homeowners will increase because I read in Florida, California, Louisiana, and other places, insurance companies have dropped homeowners, some even left the states, and others went out of business entirely. Climate change, killer storms, litigation, high fire danger, and other reasons have been cited for insurers dropping policies, leaving certain states or areas, and/or going out of business entirely. It has reached crisis levels in some states. Some people are having to go with insurers of last resort such as the California Fair Plan, Citizens Insurance (owned by the State of Florida), and others.
It’s inflation I suspect and an outright shakedown
Feeling blessed I've owned my home for 20 years I have AAA started out at 650 into this day it's only 800 they're a good company
That is lucky!
Don't hniw that until you put in a claim
Self insuring a house might make sense if you're planning to do a total remodel on it or even tear it down and rebuild in the future.
My husband almost stopped wearing his Barclay sunglasses after your last 2 episodes. He is happy you rocked em again.
I was quoted for liability and fire insurance for $300 bucks vs. 4K for a normal policy for the year.
People on low and fixed incomes are going to be forced to pay for insurance instead of needed repairs. You can buy a new roof for what you pay for insurance in just a couple years. What's it going to be, a new roof or new HVAC or new wiring or some peace of mind knowing you have insurance? Insurance company going to dump you for not doing repairs anyway, so you don't even get the peace of mind.
Minute i pay off the house, im canceling insurances. Been paying ins since 1994 with zero claims. Imagine if all those payments I had as a savings account. My mortgage just went up $200 a month cause of escrow. Every year it goes up cause of insurances. I am so done!!
I finished paying mine off 3 yrs ago. Cancelled my insurance and that phone call was extremely rewarding.
@@elgato7824 when I grow up, I want to be just like you!! Lol. Im almost there. Have 5 more years but Trying to save so I can pay off the end in one lump sum.
I know and the worst part is, I’ve had people write me and tell me they paid the insurance premiums for 20+ years and then one day they cancel your policy. Then all that money is just gone.
@@marimercy14 Some insurance companies offer a discount for paid off homes. It's an enticement to keep insuring, even though its only a hundred off.
@@rockymntain thank you. Didnt know
My main concern of going without HO ins is lack of general liability coverage. Can't get an umbrella policy without an underlying general policy.
HO IS the entire umbrella policy, and none of it is "general". You cannot hold weather and fires "liable" like you can a driver.
@@andreaberryman5354 umbrellas cover things like defamation, etc, that are not usually covered by regular HO ins.
If you properly structure your assets in trusts, etc. You are not a viable lawsuit target
Just another example of insurance corporate lawyers that are in Tallahassee changing the laws and taking advantage.
Example pip and liability for auto insurance, we should have a choice of what and how much we want to insure for our homes !
Texas here, got un renewed, premium rising between 5-7k with poor surplus line policies... how to get a liability insurance without HO insurance? Can I rent my home to myself at will?
Where can I split the liability risks and buy it from somewhere else?
I live in a senior condo community. I own my unit outright, but still required by the association to carry a minimum of 100k liability coverage.
On my home I pay $550 a year and that's with a $7500 deductible per I don't have a mortgage thanks to Mom! I also don't have medical insurance per they doubled my premium when I turned 45. Most insurance is a scam as they peddle Fear!! Timmy C Arizona
Timmy,
I would recommend looking into a short term medical insurance it's under $100/mo it's also called emergency medical high deductible just for emergency. Good to have for sure
Great video Michael, if you currently have home owners insurance and decide to lapse.. when you goto reinstate your home policy down the road, the carrier will likely note the lapse in your records even if you move to another home. The lapse could lead to higher insurance premiums since your carrier may find you riskier to insure because you went without coverage for a certain period and considered a criminal.
That in itself is a criminal act by the insurance company! These guys will look for any excuse to raise the premium.
@@MichaelBordenaro true! In the past, if I missed a payment, the next month's bill would reflect the extra cost. Now, they just cancel if a payment is late. And charge a fee to re-instate!
Allstate will no longer accept cash payment. One time when I was between jobs, out of checks, I had sold some art and thankfully had just the exact amount of cash to pay my home insurance at the local office. I was sooo grateful to be able to pay it! But the office mgr refused my cash, thus making me late. And my policy was cnx'd. Terribly treatment of an older, low income person and long time customer.
@@kristenspencer9751 easy solution would be okay pay $1 get a cashier's check.
@@MichaelBordenaropeople with lapses in coverage have proven to carry a higher risk of fraud. That's why it's more expensive when you lapse.
My issue in the desert of so Cal, is not cost. It’s that terrible fires and disastrous snow damage last year, are causing ins cos to refuse new clients. And the customers that are there are being inspected and forced to do onerous retrofits. Ie boxing in eaves. Having six inches of the bottom of the home siding being covered w rock or other non combustible material. In the desert. What do you do if in’s companies aren’t interested in your rural property? I’ve been on the phone nonstop. The contractors locally are not taking small jobs and are scratching their heads over the requirements.
If it’s a policy statewide, why aren’t I reading all about this online or FB? Seems like many homeowners would be having similar problems. Against my will, I may also have to take a chance w no ins.
And I forgot. Half a dozen refused to consider my homeowners, simply because I live in a little desert area that is redlined. Flo or the Geiko lizard won’t touch my home.
Thank you great video about insurance. I am a treasurer of two HOA's in Virginia and can tell you HOA policies are NOT unlimited has to be reasonable and not infringe on the owners "quite enjoyment" of their property. Most courts have been ruling AGAINST HOA's for a number of years and been limiting their authority. Owned a condo in FL without insurance as the policy there was 25 TIMES more expensive than Virginia. The master condo HOA would pay for everything to the walls. The best policy I could find in FL was $700 for $2000 (TOTAL) of coverage versus $600 for $500,000 coverage in VA. Again 25 TIMES more expensive. Best option to avoid HOA's and self insure.
You’re welcome Vincent. That’s right they’re not unlimited but sometimes the things these guys come up with is insane
My neighbor had his insurance co demand he put on a new roof to maintain eligibility on current annual $2000 premium.. Concrete tile replacement was $55k and he refused,,, New home owners premium now $7000/yr... Mike you da man for packing so much useful info in this vid!!!
Wow! How's that possible please I'll appreciate your assistance on how to go about it.
That's awesome. I dealt with crypto last year on Robinhood, tried some index but didn't take it out so I lost it by the end. Any consistent strategies Or good broker recommendations ?
Consistently investing with proper guidance in quality dividend paying companies is a relatively easy strategy to create wealth. Well I copy trades from daily signals of Mrs Brittney May Goad as recommended here previously
People prefer to spend money on liabilities, Rather than investing in assets and be very profitable.
They make billions a year,based on your ignorance
Wisconsin 290,000 house insurance, started out 510 for 200,000, now 570.00 8 years
Always love how you elaborate the things you tackle in your videos!
I appreciate that!
My last policy was $3300 a year and I live near Pensacola. One of my rentals I couldn't get coverage so I just got liability for 475 a year.
Dam mine is cheap for Cali 1800.00 a year.
@@brianmatthews4149 Our house is nothing special, 1800 sq' high and dry, no swamp land and no trees to fall on the house and new metal roof.
Can you please do that ? My house is paid off.
@@patricialmt5272 Ask your agent or check around. I see an old quote from Mount Vernon fire insurance company.
$770.71 dollars every four months? I can't do it. I'm 60. I just don't care anymore? No heirs, so I don't give a shit.
I used Geico Insurance for years. I purchased a Toyota corolla, with which I hit a huge mule deer jumping crossing the highway. Car was totaled and was paid out to me, liability. Then I purchased a ford F150. Someone broke into my apartment, found the spare key to the F150, loaded my belongings into the F150, then stole most everything. Once again, the vehicle was paid out to me, liability. Two years later I purchased a motorcycle and asked them for a quote. Geico told me it would be $300 per month. I called progressive and they gave me a quote of $300 per year. Obviously, I went with $300 per year. I switched everything over to progressive insurance because of that B/S. Insurance agents are sharks, and it is a "for profit business". Just know that they are not out for you best interest. I'm glad I had insurance at the time, but they're out to make as much money as possible.
I self insured for seven years in Florida. My conditions were:
1. A condo I paid $181k cash for. If it were a house, where someone could walk onto my lawn and fall down and sue me for injury liability, there's no way I'd have self-insured.
2. Condo association held a master policy to rebuild up to the studs. I estimated it would cost me about $50-60k to build out the interior after the master policy would cover rebuilding the building (assuming it burned down or was otherwise destroyed). If the condo association didn't hold a master policy to cover the building and grounds or if I didn't have hundreds of thousands of dollars in savings to draw from should I need to rebuild the interior, I'd have never considered self insuring.
3. (This is very important). The only people I ever had over were my mom, my brother and his wife and my girlfriend. So I limited the chance someone would come in and slip and fall and sue me. I didn't know many people in Florida as I'd moved down from Massachusetts. If I had guests over all the time there's no way I'd have self-insured.
As you can see, you have to have just the right conditions before you should consider self insuring.
Sounds like a smart and reasonable chance to take
how about if a fire started in your unit you could be sued for millions for liablitly claims
@@jjohnson8977 that's true. Self insuring is a risk, but so is being underinsured, which might be the case for a large percentage of those who carry a policy in the scenario you put forth.
I was underinsured once on my car insurance. While slowing for a light, a motorcycle suddenly pulled in front of me and then, seeing the light turning red, decided to slam on his breaks. He stoped a lot faster than my car could and so his rear wheel ended up embedded in my front end. So much so that the hood of my car came into abrupt contact with the underside of his seat, sending him flying at least eight feet into the air before his body slammed straight back down onto the pavement beside his still upright bike (the bike never tipped over, being held upright by the front end of my car wrapped tightly around the rear wheel). He was a large and very heavy guy, and so the fear was that his weight, dropped from such a height, would cause severe injuries. And he did sue me, getting one of those injury lawyers who advertise on TV and billboards. I have only $20k coverage for injuries. I thought it might come to a couple hundred thousand.
In the end my contention that he pulled in front of me was rejected as he had two friends there on their bikes who lied and reported to the police that he was driving straight and I simply slammed into him. I was found at fault for the accident. However, I caught a break. He didn't follow up on doctor appointments after initially being brought to the hospital that night. So my insurance company's attorneys were able ti successfully argue he couldn't have suffered from his injuries. In the end he settled for the exact amount of my coverage; $20k. There wasn't even damage to his bike, so that cost me nothing. But it did teach me that there are times you don't want to hold too much risk.
I went without it 12 years after insurance company said i had to get rid of my kids trampoline
I own my house free and clear, I will drop my insurance most likely.
Thanks for letting us all know!
I never got paid for hurricane damage as they considered it flood damage when there was no flood. A window broke and water came in and damaged the floor. Some other damage but not enough to meet the deductible. They collect millions for years and whine when they have to pay. I also noticed when you have current insurance it goes up 50 percent, but a new purchase goes up 4 times
I don't get why people have such a hard time with the self-insurance question, if you can afford to do whatever the insurance would do for you it's a no-brainer for example if you got wheel insurance for 40 bucks a month and you can replace all four of your wheels for $1,500 as long as you have $1,500 set aside for things like this odds are your better off not getting the insurance that's literally how the insurance companies make a profit odds are you're going to pay them more than they're going to pay you.
It gets even better when you start using odds instead of the worst case scenario in the previous example odds are you would never destroy all four wheels so all you really need to do is worry about what's most likely an adjust for your comfort zone if you want to you may be comfortable saying it's unlikely that I'm going to do more than damage two wheels beyond repair, and one within. In that case you only need to save enough money to replace two wheels and repair scratches on one.
I think when it comes to cases of liability you should do the same, moving on to a house most likely the most you'll ever be on the hook for is a slip and fall or someone getting bit by your dog, you can figure out what rehab for those costs in your area and add a little bit on top, but it's extremely unlikely that someone will sue you for 55 million over something that took place on your property.
It's extremely unlikely that your house will be reduced to rubble and you have to pay to remove it all and build a new house from scratch, at the very least there should be a foundation which is worth a pretty penny but realistically the most common thing you're going to lose is your roof I'm considering you already have to budget to redo those regularly if you own a house you probably just need to bump that up more to do a little more extensive repair. Etc
In conclusion, if you're thinking about self-insuring, you probably should. As an added bonus the more you self-insure the more you end up having extra money saved. Start small, next time you buy a phone, electronic, or appliance, don't get the warranty the same time you buy it put enough money aside to buy another one just like it.
It's unlikely that you're refrigerator phone computer TV and car will all break down at the same time so at some point you don't have to have a pool of money big enough to replace everything in your life at once.
The solution to high prices is high prices. Home owner insurance demand is going to drop drastically. Insurance prices will drop over time due to slack demand. People really need to use insurance for true disaster recovery purposes and use a high deductible, say $5,000 or higher.
Welcome back Superstar! Thanks for your insurance discussion.
Thanks Emzy!! I’m back 😄
My concern is that without homeowner insurance on owned free and clear house you cannot put that home under an umbrella policy. You have to have at least $300K liability for an umbrella policy to work. Am I wrong? Being able to rebuild the house after catastrophic damage is one thing, protect all your assets is another. Hope more companies will come to FL. Thank you for an informative video.
You are correct
“The real Michael has made his comeback.”
😂
I'm back!!
The OG! :D
A friend of mine and her husband has not had home insurance for 25 years and everything is fine.
My aunt didn't carry insurance on a property we had in the family and the whole thing burned in a fire and nothing could be saved. Have to sue the neighbors since the fire was started by them.
It had been off insurance for 30+ years, but it eventually happened
I am considering dropping mine too
@@karmasutra4774 Put the money in a savings account earmarked for your home, and don't spend it.
It's risk/ reward. My whole life I've made one claim for a new roof! So 30 plus years of paying premiums, so far, resulted in one roof being replaced. 🤷
@@rjrocks6345 I've never made a claim in over 30 years. I also just dropped my insurance. The second home is dropping to liability only in June.
@@karmasutra4774. There are about 350k house fires a year compared to 144 million homes. Your odds of a fire based of this data is a fire in a home once every 400 years. Given that some places are more prone to fire like California and renters cause more fires than homeowners, the odds may be even less per year
Own home in wesr kendall, have insurance but dropped wind...it went through andrew. But still 2800. On federal canal so have flood of course. Want 8000+ with wind. The 3 years saved can replace roof
Love Miami!
I’m currently an insurance producer and I’ve seen rates go up insanely. I own my home free and clear but I’m not stupid enough to not have insurance on the property.
It's actually not stupid for everyone to go without insurance. This is based on multiple factors. Unlike in the past, insurers now deny the majority of claims ( even though almost all are valid claims that should be covered), when they do pay claims, they do not pay replacement cost, they pay a percentage of costs depending on how old parts of your home are ( so someone could still get screwed), insurance premiums have doubled in last 5 years. It is actually cheaper for me ( and a lot of homeowners) to just put those would be monthly premium funds into a savings account, and use it if you need to if a part of your home is destroyed. Especially for people like me whose husband is a building contractor, it's definitely better to go without insurance.
It's not stupid. It's a gamble and individual choice. In 30 plus years I've had one roof claim. Who benefits most? The insurance companies usually come out the winner.
You would also need to carry the Homeowners Insurance if you have an Umbrella Policy.
Yes
I'm a upper 50's guy that bought my house in the cheap bottom of the house market in 2000, I paid my house off with a 30 year mortgage in about 15 years (2014-2015) or so. Both my car and house are paid off and I have a large savings account... so I'm seriously thinking of dropping HOI. I plan to retire and move out of MD to the midwest in a few years.
Did you do it?
Sucks up here in NYC can’t wait to get back to FL. Happy 🎉 New Year
Michael, how high do the deductibles go in Florida on homeowners insurance? I mean, if I had a $5,000,000 house, I would not want to go without insurance. But if I get a policy with a $50,000 deductible, so they know I'm only calling them in a catastrophe, I would imagine that would be pretty dang affordable compared to what is customary. I know most people tend to have a $500 or $1000 deductible in general. They kind of forgotten what the insurance is for in the 1st place - it's not about fixing a broken window or leaky roof, but the house catching on fire or a pipe bursting and flooding the whole downstairs.
That’s a good question Ken I don’t have an answer for you. I haven’t seen enough policies to know what the highest deductibles people have
Most people I know down here have at least a 5,500 deductable. Also I believe it’s 2.3% of the value of the house is about what the desuctible is if I am understanding it correctly. 🤔 with most policies.
Hey ken, licensed agent here. A higher deductible will certainly save you money. The highest my company offers is 10%, so if your dwelling was 500k that would be a 50k deductible.
Generally it's 1,2 or 5% of the dwelling, so a 300k dwelling coverage would be 3,6, or a 15,000 deductible. Most people go 1 & 2, so 1% all peril and 2% for wind, hail, and tropical cyclone.
insurance has not gone up yet but tax bill came & its doubled. mortgage payments will be almost double
I love prop 13
Yep that will be the story for everyone soon enough
most people's tax bill won't go up. just yours.
Company won't grant me the "privilege" of being insured on my older home unless I update all plumbing. Roof coverage is now prorated. And of course separate hurricane deductible. After that it's $8k per year. Love our governor but he didn't go far enough on this.
It's kind of like earthquake insurance in California. Most homeowners won't buy it because it's expensive and the deductible is insanely high. A friend of mine was offered coverage of $500,000 for $1,500 a year and the deductible were $90,000! If the deductible was more normal like $500, more homeowners would buy in.
When Michael needs to turn his heat on with his tank top and flip flops on the apocalypse is on
😆
Not all Insurance companies are equal. It's no good to save money on a cheap policy and find out the company was over-extended liability wise and taking on too much risk and unable to cover all your losses etc. Old adage comes to mind if it is too cheap there is probably a reason buyer be ware ... triple A rated or just above junk bond rated and hanging on by a thread. All States are not equal when it comes to Insurance regulations protections and over -site
Wayne you're 100% correct I always recommend everyone check A.M best to verify the company is A+ rated. Non rated companies go bankrupt every year leaving people without coverage.
The insurers make a reasonable point that most folks don't have the funds to cover a disaster on their own. However, it's a moot point if the insurers won't pay you in the event of a disaster. For an example, see Florida's latest hurricane/flood.
Flooding is covered by FEMA, so that doesn't necessarily apply it would fall under flood insurance which if you're not in a flood zone is only $400-600 a year.
Insurance is becoming a rip off. My commercial building rates more than doubled this year. Part of this was the insurance company decided my billing was worth more-problem is if it’s worth more the wind and hail deductible dramatically goes up too
Second was I own the building in an llc like you are supposed to and my business rents occupied the building from itself. The insurance company is demanding I have both liability insurance for the llc but also separate ones for each sub business that I own inside the building. Now wanting me to have 4 liability policies for the same property
Bought a condo in cash back in 2018. Not buying a condo policy. Figure if the building gets blown down the condo association will cover. Bad enough our condo fees are going way up because of the insurance
Studs in policies are so cheap literally a few hundred bucks a year. It would make more sense to just have a high deductible and pay the $3-400 a year instead of something happening and shelling out 70k. Just had a clients condo flood from toilet overflowing over $40,000 claim
I am in Punta Gorda, FL, which took a direct hit from hurricane Ian. My homeowners insurance was dropped by my carrier. It was $5k a year. Shopping for a new policy I am getting quotes at $12k annually. This is not sustainable. My flood policy renewal is also going up to $5k, so $17k a year for home coverage is insane. I am electing to semi self-insure, by going to a middle ground and just getting hazard only coverage, which has all the common causes of lose covered except for hurricanes and windstorms. This is an excellent option that you can talk to your broker about. My hazard only policy is ~$2k.
Property taxes are far higher than insurance and there seems to be no way to lower them until the Fed allows a crash to happen.
You got that right
Use to pay way less for insurance now it has reached the same amount as the taxs.i know it's due to past fires years back.
🎉😮🎉😮🎉😮🎉😮🎉😮
I have lived in the Nashville area for almost 20 years.
I HATE PAYING INSURANCE, BUT…
House # 1 got hit by lightning ⚡️, Blew out several items including my garage opener system, Very expensive BOSE System and many outlets…
My Insurance company paid to fix and replace EVERYTHING.
House # 2 plumbers installed the Wrong kind of fireplace logs in my new house. My friend fell asleep on the couch with the fireplace running. Fortunately he awoke to the smoke alarm 🚨. But my Entire house got Smoke Damage. Same insurance company paid thousands and thousands of dollars to dry clean all of my clothes and then wiped down every single surface in the house including inside the cabinets,Closets,Walls and ceiling.
House # 3 Tornado 🌪️ in Tennessee I think it was 2020 and lifted the house off the foundation and blew away about a Third of my house including my music room which had about 15 Guitar’s , Expensive artwork and tons of recording equipment. I lost so much stuff. Fortunately the last time I was there I happened to take a video of the entire house 😊❗️my insurance company did not want to pay at first but after speaking with the insurance representative I was able to gather all information needed which included receipts for almost everything because this was a new home and I kept a file in a safe place.
Same insurance company paid to replace the entire house and pay for all my lost items. They also set me up with a nice hotel for over two months until they could get me an apartment. They PAID FOR EVERYTHING ❗️
So I Hate paying for insurance But thankfully my insurance broker and the representative worked with me and I eventually had a new house 🏡.
I WOULD NEVER HAVE A HOUSE WITHOUT INSURANCE.
THANK YOU MICHAEL. , Carlos
Ned Flanders: Well, sir, everyone's alive. Guess that's something to be thankful for.
Homer: Now, that kind of attitude's not gonna get your house back.
Marge: I'm sure your insurance will cover the house.
Maude Flanders: Uh, well, no. Neddy doesn't believe in insurance. He considers it a form of gambling.
I paid 1500 a year in 2012. Today I pay 5500 a year. Same policy, same agent, same everything and 1 claim in 12 years
You should probably shop around. It's time.
California here. Zero claim. Insurance doubled.
same here i was paying around 650 dollar something in 2020 and now its 1500 for that same coverage insuance no claims either in socal
I self insured since 1991 for all my real estate 28,000 acres bought and sold, 1000+ escrows! But only 3 of my past 40 boats and vehicles.... States are terrible when it comes to Deposits for self insurance..
My homeowners Ins agent was telling me that if a person lets their property ins lapse, most likely no other Ins Comp will take them.
I wonder whats the deal with that!
Not all, but it does eliminate some options. Statistically if you let it lapse the likelihood of you commiting fraud or attempting to is higher. The reasoning is the insurance companies believe you let it go because you didn't want to pay for it must be a reason you want it now.
My Dad just dropped windstorm/hurricane coverage, but retained everything else, including $100K personal liability, and lowered his property insurance from $3000 to $1500. I haven't carried property insurance for over ten years, but just got a quote for $300K personal liability for $400.
Yeah I know bro! It was rough over here in Venice. Got down to 31 at night.
I saw couldn’t believe it!
It is risky not to have homeowners insurance whether it is paid off or not. My parents drilled it into us to always have life insurance and homeowners insurance. Freak accidents occur all the time.
Your life insurance should be your annuities and pensions and savings . Homeowners and auto insurance are much more critical.
True. Now I have been known to bump my deductible up to save money since I can handle small stuff easily and really are looking for protection for the big stuff.
@@eddenoy321 auto insurance is certainly critical and required. However, I do not think of life insurance as personal investment. It is to help cover your final expenses for the family you leave behind.
@@emzywillrich7243 If you are a person with a modest estate., then life insurance is a responsible thing to do for your survivors. It most certainly is NOT an investment. Hopefully your premiums are small since you mention "final' expenses. I think that a joint annuity product would be the better way to go, but that does require a chunk of money that most just don't have.
My home is valued at $625,000. The land by itself is $325,000. Leaving the real value of the house is $300,000. You can have a hurricane, fire or flood the $325,000 land won’t be damaged. All I’m really insuring is the $300,000 house but they want me to carry insurance for the whole $625,000.
My question is in Tampa or Miami. In the summer time heat. What are these homes really worth when electric grid fails???
Hmmm…
Good point. House would be full of mold without AC.
@@linhaton4957 after a month or two it would be.
what is any home worth when the electric grid fails then??
I guess you would buy solar.
What if there is a nuclear war in Florida ? How much insurance for that ?
5:56 Hi Michael, that cool car is for sale! My name is Castro and I’m asking $25k for it. It’s an all original 1955 Chevy Bel Air. Thanks for stopping to show the car, one of our neighbors is your follower and they sent me your link. Anyway, best of luck with your channel and I wish you the best of the best.👍🏽
Very cool! Thanks for writing that here Castro, its a beautiful car. Who knows maybe someone will see your comment and buy it 👌. Appreciate the kind wishes, happy new year!
@@MichaelBordenaro thank you brother! Happy New Year!
You and Lizzie have a very bless Happy New Year ❤️❤️
Thank you very much you as well!
I stopped by to see a friend in Port St. Lucie, she said her premium increased from $8K to $14K…and they are west of 95.
That's like living in jersey. And how much property taxes.
The avg joe RE investor whether owner occupant or investor has grossly underpriced the cost of capital for RE. On insurance..it's only as good as your insurer's ability to pay
Hi Michael Have a look at Daily Mail online today UK Newspaper 2 Articles worth reading one is on EV cars the other is on Crypto regarding the Twins
The man with the plan!!!!
Also, if you have savings/investments equal to the value of your paid off house.
Paid off Home and will self insure .
How will u self insure?
@@coffeedollsvp $ in the bank. Unfortunately many insurers don’t pay out any more
I'm sure the number one question most people want answered is what will the mortgage company do to people who can't get insurance .
They will buy a policy and add it to your payment. And it's not cheap insurance. They won't shop for a bargain
@@fauxque5057 It's called mortgage insurance. It covers the cost of paying the mortgage. Nothing else is covered.
My friend's daughter lives in Kissimmee she had 4 feet deep water in her house during the last hurricane Kissimmee is very low lying it's a reason has big lakes that are very shallow with a lot of marshy areas
I’m staying on west coast of Florida now and you wouldn’t believe what the building insurance policy is for high end place
I just got off the phone with my agent (pure coincidence) and I mentioned insurance doubling in Florida. It comes down to living in a disaster zone. He mentioned a client who moved out of Oklahoma, where they were paying over $5,000 annually DUE TO TORNADOS. When the client moved away, his insurance shot down thousands. I pay $800 annually because I'm on a hill in Spokane Washington. The people in the neighborhood below me pay thousands annually because they're flooded right now! Simply put: "It's the hurricanes, plus inflation of replacement building supplies." I paid cash, so no appraisal, so he called to varify his researched quote of $153,000 replacement costs. I told him I concer-that's a lovely value estimate. I'm less than $100 a month because my home is only 624 square feet, one story, outside of flood zones, with dirt crawl. HOME SIZE matters a lot, BASEMENTS matter a lot, WEATHER and WILDFIRE matters a lot. Oklahomians pay wind insurance, Washintonians pay flood insurance, Floridians pay for both flood AND wind.
The bigger the home, the higher the insurance. Basements are subject to hydrostatic pressure fails and water damage that unsealed dirt crawls do not get. Unsealed crawls dry out, basements don't. Unsealed crawls have minimal foundation to go bad and trap moisture.
All of these keep my rate super low.
Boxes are cheap to insure
I live in a 100 year flood plain. Historically, it has never flooded. I had to pay extra for that? House is like 4-5 foot above ground level. Built in 1900. You have to walk UP
steps to enter it? Paid off. I't's all a rip off.
The deductible is taken out of the insurance payout. They do try to recover it from the other party if it is a car accident claim.
Either way, you still need to have that extra cash to make up the difference
@@MichaelBordenaro I certainly agree!!!
70 degrees? I’m on the way. DC, Md & Va, HUMBUG
I hear you!
I have a neighbor who hired people to mow his lawn. The dude who did it had a heart attack and died on his property. He bought a riding mower and does it himself afterward. Technically speaking he could have gotten sued because he died on his property. Scary.
The biggest problem is even getting insurance in FL at any kind of price! Then you make a claim and they don’t pay. I now believe the risk of the insurer not paying is higher than the risk of self insuring at a ridiculous rate. Not worth it.
You could have insurance all you want but we both know they will never pay you out.
I live in FLORIDA.. I canceled my insurance 3 years ago .. family members have never had insurance for 25 years Some evenmore. their homes have been threw multiple hurricane 🌀 never had a need for insurance.. if my house was a mile from the ocean, I'd consider it .. for the most part, it's a scam
I think you need to differentiate the between home insurance, windstorm insurance and flood insurance. You say homeowners insurance but I think you are refering to windstorm. That being said, my windstorm insurance provider went bankrupt in the middle of a claim. Because my roof was dammaged I was not able to find anyone to insure me. My house is worth $415K but I only owe $45K. So my mortgage comany force placed my windstorm insurance and now I pay only $57 a month. Of course that only covers the $45K I owe and wouldn't cover any damage. But if you have a low balance on your mortgage it might be an option if you can't pay windstorm any more.
Here in Chicago, my homeowners went up almost $200 last year even though I haven't made a claim in over seven years. I assume I am paying for everyone else.
Lots of people mistake their homeowners insurance as a maintenance coverage policy for both personal and structural property. I'll buy that policy if it exist.
Thanks for the Info, Explain's my neighbor who 's house isn't repaired after a "Truck" knocked the walls off, the foundation, from a auto accident, "BIG TRUCK", stolen by a thief, "NOT INSURED", owner moved I expect, they will let it go for "Over Due" taxes, "Sheriff sale.
Most likely
In 1995 Pensacola Beach was hit with two major hurricanes within 60 days. Hurricane Erin Sept 6 (more wind driven) and Hurricane Opal Oct 6 (more storm surge driven). In between the storms, homeowner's tried and paid for as much insurance as they could get. When the second hurricane Opal hit, the insurance companies would not pay. A lot of excuses and clauses in the policies. At that point, many of the people I talked to, said they wanted to "self- insure". When the insurance company is unreasonable, people become unreasonable. So, who's at fault?
My mistake, Erin was August 6.
Hi Michael, like your video, have a great day 😊💟💟😊😊😊😊
Keep it going! Great job
Will do!
Trust me, an insurance company will never reject the premium. :-)
Thanks Michael 👍
My pleasure!!
my insurance was canceled due to my roof get really old , then since I do not have insurance . my property tax already 8400 $ year so I can not effort insurance any longer .
Thanks again
So glad you clarifide the reality that inspite of all the bad news about insurance companies there are still some good ones..Most are ready to pounce on consumers with crazy rates.If you stick to your guns reasonable rate increases can be found. You just have to play their game and fight back....