Florida couple saves $100,000 after deciding to 'go bare' by not purchasing wind and flood coverage
Vložit
- čas přidán 4. 10. 2023
- In our ongoing series “Price of Paradise,” we focus on the rising costs of living in Tampa Bay. Some residents are choosing to go without homeowners insurance rather than pay double-digit rate increases. A St. Pete Beach couple made that decision years ago, but an industry expert warns taking on that high level of risk isn’t for everyone.
A lot of people don’t realize they are going bare with insurance anyway.
Insurance companies are professionals at not paying coverage.
If a storm levels south Florida the companies will just declare bankruptcy anyway
At least if you're self insured, you can be confident you'll pay. Why the insurance oligopoly today, it really is a toss up if they'll pay. Can't rely on them for anything, and they charge these exorbitant rates. Freaking worms.
There are people who get compensated very well whose sole job is to find ways to deny claims.
My parents place got some damage from a hurricane (nothing too major some water got into the walls etc) and the insurance refused to cover it saying it was “wind driven rain damage” and that they were covered for rain and wind but not wind driven rain.
Total scam. I’m sorry to hear your parents had to go through that.
The key action was them SAVING that $7000 every year and NOT TOUCHING THAT MONEY!!
bingo, i try to tell people when they pay their car payments off to continue paying yourself that amount for a new car or repairs.
with today's interest rates they could collect $500/month in interest off of that 100k. 500/month is all of their utility bills paid every month.
@@user-st1hy6ql3jI'm not sure your math is correct.
7000 aint shit if your house gets damaged
@@modelcitizen1977Na he's right.
My Discover Savings account is at 4.5% and I've heard of some accounts being around 5% APY. That would be a 450+ a month on 100k
Self insured is becoming less risky than dealing with the insurance companies.
I know, right!
If legally, we are required to hold the policy to own the property, then they must legally pay us if a claim is made within their policy signed.
I literally see no use in saving up or spending $500 a month to burn for insurance when again they will do everything possible to limit the amount you can claim they will call you at 4 AM after you had an accident at 2 AM in the morning, knowing that you were concussed just to try to get you to admit something so they can lower your claim, even though the only reason you would say something as such as probably because you’re concussed right after an accident.
absolutely.
100% less risky. Insurance companies will find every way possible not to pay out. Just save any cash you'd be paying them and just save it like the couple in the video. It may not be as much as an insurance payout or it may be significantly more.
Especially when companies look for every excuse to deny or reduce a claim
They just won't pay, then vomit up lowball settlement offers, then you get a lawyer and spend years in court.
We could not buy into the Florida insurance scam, went bare 5 years ago. We could replace our roof every 4 years with the money we save on artificially hiked rates.
We went bare in 2004 here in the Tampa area. It’ll be 20 years this June. No problems.
certain construction techniques are far superior to preventing catastrophic damage. for instance techniques of nailing down walls to the foundation.
EXAMPLES:
**Water-Resistant Barriers**:
- Hydrophobic coatings on exterior walls
- Water-resistant membranes under roof shingles and around windows and doors
- **Advanced Fastening Systems**:
- Hurricane straps and clips with higher load-bearing capacity
- Threaded rod ties running from roof to foundation
- **Impact-Resistant Films**:
- Window films to reduce shattering
- **Enhanced Roof Designs**:
- Construct hip roofs instead of gable roofs
- Strengthen roof edges with metal flashing
- **Flood Proofing**:
- Install flood vents in foundation walls
- Elevate electrical systems and outlets above flood levels
- **Exterior Reinforcements**:
- Install DIY storm shutters using plywood or metal sheets
- Reinforce garage doors with additional bracing or install more robust doors
"It is the second best decision I've made" ... while glancing at wife. A very wise man, lol.
This is the comment I was looking for! Wise indeed!
@@listenupfoolioAre you a beauty? Really?
@@listenupfoolio
That is an uncalled for comment.
My A.D.D. would've done the talking and I would've paid for it. "Hell yeah this is best decision I have ever made, you know how much money we're saving?!" Don't think before you speak impulse reaction.
@@listenupfoolio And you think you're gonna look gorgeous in your seventies? Or eighties? He loves his wife. The person, not the appearance.
The bigger problem I see with insurance is not just the skyrocketing cost of premiums, it is when you make a claim and they take months to pay plus they only pay a fraction of the repairs.
What is the point of insurance if the companies don't honor their obligations?
New Fl law "2A" says they don't have to pay, and you can't take them to court. License to steal, major scam. Even if you pay through the nose, you are unlikely to ever get what you paid for should you need it.
Their job is to find a way to "not pay you"
@@Sideler74 It makes no sense.
There are two obvious markets:
- The one for people that want to pay the smallest possible premium even if that means that you might not always get coverage when you need it.
- The one for people that are willing to pay larger premiums but have absolute certainty of coverage.
It makes no sense that there are no insurance companies that focus on the certainty of truly guaranteeing coverage when you need it, even if it means a higher premium or higher deductible... but with 100% guarantee that you will see ever last penny of coverage after that.
TBH it seems to me that our insurance laws are seriously broken. First by allowing national chains to set themselves up on a "per state" basis instead of being required to offer the same policy across the whole country (I am not talking of smaller insurance companies that operate ONLY in 1 state). Second by allowing the sleazebag practices of not covering what customers were clearly led to believe they'd receive when they bought the policy.
And in FL you can no longer sue to get damages coverer. Roof torn off in a hurricane? Here is your $500 bucks. And you can't do a damn thing about it.
@@ericjohnson6675 Yep, I bet a lot of people are feeling stupid for electing their current Florida legislators.
One thing is to pick between right and left. Another is to pick sleazebags that tell you a pretty story and then abandon you. I wonder how many of the current FL legislators will get reelected in 2024... if any. By the very poor response to this issue, unless people are incredibly stupid they are certainly going to give away their seats to the opposite party.
can you imagine that - paying an insurance company for 14 years with no claims?? basically you handed them $100K free and clear for absolutely nothing and no returns whatsoever.
You don’t seem to understand how insurance works😂😂😂😂
@@ploppill34the point is that when there is damage and the time comes to put a claim, insurance companies are aware Florida experiences frequent storms and so they take a long time to dish out payments purposely to make money.
Leave Florida to the Jews.
100,000 x 20 million people....😂😂😂
Many Many people go an entire life time without ever putting in an insurance claim.... on homeowners insurance.
The one pro-insurance factor I will note in this discussion, which I learned in Insurance Law class, is that insurance is often not about how much they will cover for you but it is how much their legal department will fight to avoid paying.
If you don't have insurance your potential liability is unlimited but when you have a prepaid legal department going after the claimant, they will at least limit the payout to a nominal amount or not pay at all.
I experience this personally with car insurance.
My neighbor experienced this with her apartment which was flooded due to old pipes in the apartment above her. She asked the landlord company to ONLY pay for HALF of her new mattress that was destroyed. The building said no, it wasn't their fault that their pipes burst and flowed for 8 hours.
First, I asked her why she wasn't asking for the landlord to cover everything rather than half the mattress. Furthermore, my neighbor didn't even think of calling her renters insco so I told her to enter a claim for everything.
The next thing you know, the landlord is getting inundated with legal citations confirming that the landlord is 100% responsible and the landlord settled with the insurance company and re-plastered and painted her apartment.
In these situations the insco must payout to the insured and THEN go after the other party (landlord) for reimbursement so you don't have to wait.
The insurance company making a case for him to continue being paid is the funniest part of this video, screw the bloated insurance system
It’s funny everybody says screw the insurance industry until they want to file a claim.
The law in Florida was screw the insurance industry. So they left. Be careful what you wish for.
They r all scams
@@neilkurzman4907 > The law in Florida was screw the insurance industry
What law? the one that said they needed to pay out for hurricane damages? Thats not screwing the *National* company that offers insurance.
You would think a news company would at least go through the effort of finding a more objective "weigh-in."
Well then screw Florida the next there is a hurricane. Figure it out. Your all so smart.
listening to an insurance company guy on insurance is like taking advice from the mafia on paying protection money.
😲😜🤣🤣🤣🤣🤣
It’s not “advice”
"Listening to a doctor guy about a medical issue is like asking the mafia to lower your cholesterol"
But with the Cosa Nostra you actually get what you pay for.....!
The mafia would be more trustworthy then any insurance company
We bought spring 2022 with a 5% rate (it had just started going up). Flash forward to today, a house on our street just went up for sale, same floor plan listed at $75k less than what we paid. Albeit with a higher rate, so a higher monthly payment nonetheless. That to say…yeah it always feels a little oof to see them coming down.
Housing costs will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
This is precisely why I like having an asset manager look over my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a manager for more than two years, and I've made over 85% of my initial price.
Don't be hesitant to contact Sonya Lee Mitchell and follow her directions.
@@HildaBennet Seems like housing prices should be based on wages. The average person makes X
dollars and housing should be a multiple of that figure.
@@FinnBraylonSonya lee Mitchell once gave me a sloppy toppy! Best sloppy toppy giver in the NE United States, she really puts the sloppy in sloppy toppy
Great idea for someone who has the money! AND, IT SPEAKS volumes to insurance companies gouging people without lifting your middle finger!
They're not gouging people...... it's sheer Folly to think that an insurance company can dish out 500k 50,000 times, 3x a year for 3 years in a row and not have massive rate increases..
@@josephrice29 but you forget it’s the game they want to play! High risk, equals high reward. Think about how many years go by with all of that free money invested?
@@RK-de5wgFlorida’s problems are Florida problems. We get hurricanes in SC and our insurance isn’t like this.
My parents live in Florida and after a hurricane small business contractors will start knocking on doors asking you to sign a form to get a free roof replacement. They take care of filing the insurance paperwork in exchange they get to replace the undamaged roof and collect the claim money. My parents have done it twice in 20 years and have the audacity to complain about insurance rates. Everyone in their neighborhood does it. No laws preventing it.
Then, making up any excuse not to cover flood damage like they so often do...Do this if at all possible! Screw the interest tax write-off; Pay the mortgage off first, amd foremost...
It’s not being without insurance, it’s called being “self - insured”
This is honestly one of my financial goals
Self-insured is uninsured.
@@DailyStalkerUpdate “self-insured” is when you have enough money to cover a complete loss of the home without a big stress. Do you insure your clothes?
@@LuckyJordan45 Self-insured is when you deposit money or post bond with a government agency to cover a potential loss to somebody else due to a potential liability.
What YOU'RE calling "self-insured" is actually uninsured.
No, I don't insure my clothes. What does that have to do with anything.
@@DailyStalkerUpdate thanks for the explanation. I didn’t consider that it was a legal term with a different meaning than what I originally thought
My house went through a direct hit by Ian. There was significant damage to my roof and the insurance company offered $1700 to repair it. Had to hire an attorney to fight them and came to a settlement the day before it was to go to trial. This took over a year to reach this point.
I never had a claim in over 40 years of home ownership. I’m sure they will drop me at renewal. Going bare seems to be the way to go.
I'm with AAA here and they are cancelling policies left and right for people on canyons regardless of whether they cleared their lots. My agent said the company goes by the last year even if you've never made a claim in 30 yrs. Ours is $499 for a small crackerbox house worth $700K+. It must be a mistake.
I had the same issue with an air con electrical burnout due to lightning strike. The insurer I was insured with for 30 years tried to put me through a whole deal over it & I was stuck in 190F heat with no air con so now I 'go bare' with electrical burnout. I save that money to just easily replace the item immediately myself. Best insurance decision I have made as I haven't had it happen since then anyway.
Logic is an over rate thing. Practicality simple , gathering the rights verses the wrong priceless . Especially that to an industry of customer commodities goods and service , Insurance Companies are organized crime syndicates that are not regulated . They can literally get away with murder .
Yeah insurance is like this hit or miss thing. My family has this $7 a month plan from public service and we never had to use it but recently, of course in the frigid chill, the heat kept dying and they’ve now come and fixed it five times for free. It’s great if you need it and the company isn’t a jerk but otherwise it feels like a scam
YOUR ATTORNEY WOULD OF COSTED MORE THAN YOUR HOME REPAIRS
Should be titled, older generation finds out insurance is a scam
Insurance isn't a scam. Margins in insurance is near zero, they make money on their investments.
@@davidmann2524 investors making money has nothing to do with the fact that a service is being charged for while rarely being rendered to the consumer thus making it a scam. Insurance companies put a lot of effort into underpaying market value whenever possible to insure profit
@@davidmann2524 inaccurate comment by a mile. if you're thinking of health insurance returning excess premiums think again. they find ways to increase their admin costs as to 'game the system'. that's why i keep getting paper bills after going paperless.
@@john_mccarthy_hi oh I wasn't talking about US healthcare, thats an absolute scam. I actually made a lot of money on the business tech side in sales in a job that shouldn't even exist under a universal care system. The convo is about property and car insurance here though.
@@davidmann2524it's a scam and you can't cry about it🤷
My insurance company in Florida did a drive by inspection of my property and said they were going to refuse to renew my policy if I didn’t cut the trees back from over my house. So I did at a cost of 5000 dollars. At the end of the policy period they dropped me anyways 🤷🏽♂️
True story. I often wondered if I should have seen an attorney about that.
yes, what zip code ?
Insurance is such a scam. They're happy to take your money, but when it comes time to pay, they decide to pull out and take off.
INSURANCE IS A GOVMNT PERMITTED PONZI SCHEME AS LONG AS THEY GET A CUT !
Yeah actually many people don't realize this, but much of the money in those hurricane relief packages congress passes after every storm actually goes to cover the insurance companies losses, not to help home owners. So you pay for your insurance they collect and pay themselves with your premiums, then after the storm hits they get the money they pay you from the government.
If you didn't pay and your house washed away the savings wouldn't pay for a new house. Just because nothing bad happened to you doesn't mean they took your money. You exchanged your money to be made whole IF something happened during the period you paid for. Would you feel better if you lost all your belongings in a fire and were able to file a claim for insurance before they pulled out?
@@DysiodeDid you not hear the homeowner if the damage is caused by hurricane the insurance will only pay him $5000 try rebuilding with that kind of pay out.
@@DysiodeI already saved more than it would cost to rebuild in just a few years.. but go on scammer.
Very smart move, for people who actually own their homes and who can afford to do this
You do understand who can afford to do. This means you’re gambling that you’re not going to have a major claim. At which point you would have to sell your vacant land for whatever you could get.
Mortgages don’t last forever. They usually get paid off.
@@chodkowski01I think at my age I will certainly be dead by then
The smarter move would be to get the hell out of Florida.
@@neilkurzman4907 or you can rebuilt better with reinforced steel structure with cement block and like the STORY said einstein THE LAND IS WHAT IS REALLY WORTH THE PROPERLY specilly in the usa with such poorly built home.
I paid insurance on my boats for 28 years, never claimed a scratch. Hit something one day and needed a new outdrive. The insurance company (boat us) gave me the biggest hassle and wanted me to buy new parts and combine them with old parts in order to make me whole. I ended up paying the difference on top of my deductible to buy a complete new drive. 28 YEARS NO CLAIMS! Insurance companies are crooks, they love to take your premiums, but when its time to make a claim, then we have a problem.
My home was built in 1973 with no sink holes ever reported near it. I'm saving almost $2,000 a year by not having sink hole coverage.
If you make a claim, your rates go up.
If you don't make a claim, your rates go up.
Many exclusions make a payout difficult to impossible for anything remotely "not covered".
You "save money" by raising deductibles to obscene levels, further discouraging making a claim for a lesser amount.
I get a better deal from casinos.
Why would you make a small claim? Insurance should be used exclusively for catastrophic damage. Insurance is a safety net not an investment.
@@DemPilafian insurance is a scam wake up dude
@@s0nnyburnett I do agree but Florida is prone to natural disasters. Its expensive to cover all these claims. Not a great place to live.
@@s0nnyburnett One day you'll be an adult and learn the need for responsibility and insurance. When that day arrives, I recommend you choose the highest deductible possible. It's the best value because insurance companies know those customers are the least likely to submit fraudulent claims.
You are at a casino. Without your gambling, you’re not going to have a major claim. With insurance you’re trying to mitigate your loss if you do have one. Odds are you won’t because that’s how insurance works. When everybody’s filing a claim, then you insurance hast to go up, there’s no magic pile of money it’s all your premiums and everybody else’s.
We've been doing this exact thing since 2011. Ian caused $35000 worth of damage, we paid it all in cash didn't need to wait for insurance money and have over $40K left and growing by $10K each year again. Our biggest fear is the dreaded multiple hurricanes in a year scenario. We know our risks and we are willing to gamble at our age rather than handing over $10K per year to an insurance company that will just give you nothing but hassles when you try to put in a claim.
Besides if you use up the savings on the first hurricane, you can always go back to traditional insurance until u stabilize.
most people don't have $35K laying around like you.
That actually happened to my sister in law double hit and something about having to oay 2 deductibles since it was 2 different claims. Bunch of crooks! We dont have that kind of cash but ours is at $2800 now but we are super afraid of the future!! Every year the “ insurance shuffle”!! We just got 2 letters from Citizens. We are super afraid of no insurance. Major repairs are one thing but being caved in and destroyed we cant risk being homeless. We are super scared.
@@minerran If you own a home you have at least, AT LEAST, 35K sitting in the bank at any time. Nobody is buying a house with every penny that they have that is moronic.
Is it possible to "hurricane proof" your home? I've always thought that if I ever moved to Florida I'd like something that would be difficult for a hurricane to damage! (We don't have hurricanes in the Pacific Northwest - though an earthquake or volcano is a possibility every century or two! 🙂)
I live in Coastal Georgia, right on the marsh. No mortgage since 2007. Flood insurance was about $6000 per year. Flood insurance would not have covered lower level, anyway, so I canceled insurance. In 2017 we were flooded by hurricane Irma, at a cost of about $40k. We had saved about $60k on flood insurance, so we came out ahead in the end.
The lesson I took from this is if you don’t want your house to get blown away from a hurricane don’t buy a house where such a thing is inevitable. The same goes for living in a house in the middle of the woods where the forest burns once in a while. These things you can’t prepare for but not prevent.
too logical
The insurance guy wants homeowners to keep paying continuously rising insurance rates? Go figure.
Tell it like it is! 😆
He’s so independent!!!! 🤔
Exactly!! 💯
I was shocked........lol
It's s despicable profession, filled with deplorable people.
3 years ago I had a problem with my agent and called People's trust to work with them directly. The rate they told me my agent should've been charging was 40% of what I was paying. I clarified that didn't include the agent's fee and she said "NO, that INCLUDES your agent's fee".
At the time, I had a mortgage and couldn't forego insurance and my agent knew it. She added 60% ON TOP of the rate I was supposed to pay. I called her out on it and after some unpleasant words from both sides I decided to pay off my mortgage and find another agent that wasn't a thief.
But it's exceedingly difficult to find an honest insurance agent in Florida.
Here in Northern California, due to the fires, my homeowner policy went from $2200 a year in 2016 to over $11,000 in 2020. My home is paid for, sits on 15 acres of well groomed land and I have cleared a substantial fire break around my home and outlying structures. In addition, I brought in two 20,000 water tanks with a 20hp gas pump and 1000’ of 3” fire hoses to fight back any perimeter fire if the case presented itself. Considering all of this work to safeguard my home, the insurance companies wouldn’t budge one dime on the premium.
So, I self insured the entire property. I only carry liability insurance and minimal coverage for fire and theft. My premium is $1500 a year.
I have done essentially what this couple has done, I take roughly $10,000 a year into a separate account for home losses. My CPA advises that any money I spend out of pocket to cover property loss is tax deductible, a bonus. I’ve accumulated $40,000+ so far and in short time that’ll grow into a fund well financed to cover most losses, as improbable as they might be given all of my safeguards. All of the work I’ve done adds to the property value which makes it a win win all around.
Insurance companies do not lose money, just glance at their financials. Allstate insurance cried about the woes of fire losses, yet they post record profits and their reserve fund is higher today than ever before. Taking advice from an insurance company is like having a cigarette smoking oncologist advise you on the benefits of smoking. He makes money, you get crap advice and you empty your pockets.
You are a smart person
@Leo:
I'd say you are doing GREAT, compared to my friend in LA, who saw her Fire Insurance increase 100%, from $16,000 a year in 2017, to $32,000 a year in 2018.
(I guess her home is pretty expensive)
She has a lot of trees of all kinds around her home, and pays someone to hose them down twice a week.
Last time I checked, she was paying $45,000 a year for Fire Insurance, in 2021.
Yes, you are doing OK.
But what happens if and when you go to SELL your home?
When the potential Buyer tries to get Fire Insurance, and cannot, will he still want to buy the house?
Maybe the Buyer has a special "Fund" with $100,000 in it, so he does not need Insurance.
Maybe the Buyer will pay ALL CASH, and so there would be no need to go to a Mortgage Bank, and have them require Fire Insurance, before granting a Mortgage.
Or Maybe not.. . . .
As Climate Change (and its subset, Global Warming) increases, and continues to go mainly unmitigated, these are the kinds of things we will increasingly need to face
I live in Australia and we have many bushfire, even the best prepared people lose their homes regularly. I wish you luck mate. Bushfires are very unforgiving.
If fire breaks are the answer, does that give a home owner the legal ammunition to go after adjacent land owners who allow combustible vegetation to grow unbroken?@@tclanjtopsom4846
Too much work buddy, easier to move
Living on the NC coast and Progressive raised my homeowners/wind and hail from $1600 to $7100/yr. Ending ALL my insurance policies with Progessive.
My Dad did that for years with no issues. My sister got the house and insured it. 3 months later it got damaged by Hurricane Charlie.
Not sure of the numbers but she managed to get everything restored and upgraded.
When he said that was the second best decision he made, then look at his wife. Aww💕
Let's see where they are 10yrs from now
He was talking about his girlfriend next door.
I was looking at those teeth. Yaaaaah. Lot of money can also saved by dealing with those things over one's lifetime
@@meak13they would have another $70K saved to add to their $100K already saved. I’ve paid Homeowners insurance for 40 years. I had 1 claim and they dropped me. These people figured it out.
@@meak13They'll still be together.
Exactly. I've paid cash for my homes through the years and have not purchased insurance from the thieves for 50 years. I made monthly insurance payments all through the years to myself through mutual funding. I've been lucky and have not had to draw from that fund. Now if something adverse happens I could rebuild my house 2Xs over. I got rich from my self invested insurance money, instead of making the insurance thieves rich. It's hilarious!
Is that easy to do?
Mutual funding?
@@rdred8693 It's been super easy for me. I've let investment firms do it for me through the years.
Why we paid cash as well..for home and auto...ugliest house and car but we dont keep up with anyone....we have security and that is the pinnacle of satisfaction ..that and real friends and family...take your sovereignty back.
@@rdred8693a mutual find ....thats what is meant. Mutual fund right now pays you 6k a year with a 200k deposit. Leave that money ¹0 years and it will double
Why pay for the service when the service is designed to shirk all responsibility?
They didn't go bare, they switched to being 'self-insured'. Is it as risky as the insurance pros want you to believe? Yes, for the vast majority of Americans who don't have the discipline to budget and save.
Fun Fact: USAA came into existence due to the fact that life insurance companies would not sell life insurance to military members. As a result, a group of military officers decided to pool their money and would pay a death benefit in the event one of their comrades lost their life due to enemy action. Today, USAA is one of the largest and most competitive insurance companies in the USA. Perhaps, it’s time for Florida homeowners to try something similar.
I think Louisiana has done something similar.
My husband recently checked out USAA on the advice of my brother-in-law, both Air Force vets. I’m not sure what kind of coverage my husband asked for a quote on, but there was no discount or better rate from USAA than what we have currently through State Farm. We were so disappointed!
@@jesseostone386Perhaps it’s time to once again to pool resources with responsible and like minded individuals to insure one another while bypassing the commercial insurance industry.
@@jesseostone386 USAA rate is a bit higher than many mainstream but when you need to file claims, they will fight on your behalf to get them. That including auto insurance as well. So far all my claims with them resulted in minimal premium increase. Month home insurance is $85. $390 for 3 vehicles. 2 full size SUVs and 1 full size pick up.
Unfortunately, it’s Florida…
That is a wonderful man, when he said it’s the second best decision he has ever made. Made me smile.
Yeah, that was pretty cool.
+1000 wife points there. Smart man. 😁
He got some that night.
He's smart in more ways than one!❤
if you don't have a mortgage, this is the way to go. I remember homeowners who suffered losses during hurricane Sandy in NJ that still hadn't seen a dime of insurance money YEARS after the storm.
I’ll be going Bare in the next few years. My State Farm which we had for over 19 years denied every hurricane claim but was quick to raise my rates faithfully every year
Insurance companies are crooks and they need to be held more accountable with more transparency of loss ratios and premiums.
Same applies to "health insurance" companies. We need to cut out the middle-man
Do you understand that with the insurance company loses too much money they close their doors and stop offering the product. Florida did several things that increased the payout from insurance companies while limiting premiums. The biggest insurer in Florida right now is the state of Florida. They are also losing money.
@@KonananYup, get the cheapest and Max out Health savings account. Specially if one is young
It’s all scams and money grab
@@jdos5643
Then, always make sure you have a little insurance as you possibly can have. And see how that works out for you. Mathematically, the odds are in your favor.
I stopped paying them 15 yrs ago after a dispute with them and also saved the money in a separate account which has grown nicely. Even if my home gets destroyed, I can still sell the land . I am by far ahead.
This is simply called "self insuring." Some of the biggest companies in the world have the dough and self-insure their buildings, I used to work for one. They showed the numbers to shareholders what they were saving and that by setting aside all that cash they were coming out ahead. It works absolutely fine if a)you don't touch the money and b)you set aside *enough* and if you invest it in cash or cash equivalents, you might even come out ahead in the current interest rate environment
Most people would blow the money though
I have also saved about $100,00 by not insuring my Sarasota Florida home for the past 15 years. I sleep just fine at night.
But did you SAVE that money in an account you keep sacred or did you spend it??? Most ppl don't have the money smarts or discipline to do that
This is brilliant as long as you are disciplined enough to save the money needed for possible repairs.
Lets see... possible repairs, new roof, structure repairs, new flashing, we are already well over $100k in FL.
you are wrong and very negative…
You WILL BE THE SUCKER THAT KEEPS PAYING THEM OVER $7k a YEAR! Plus the $20k deductible and they love you for it.
🐑
@@johnSmith-uz8nl Depends on the size of your house. Theirs isn’t very big. Plus you’ve got the $20,000 deductible to meet if you file a claim. Also keep in mind that the company will dump you once they’ve paid out the claim.
No argument that it’s risky to go without insurance. But what this couple is doing is a valid option if you are disciplined enough to save money monthly and understand the risks involved.
@@johnSmith-uz8nlif you have reenforced trusses and upgraded windows you can narrow down all that to repair the roof
@@bombomos do you know that roof repairs after a big storm cost about 300%? There have been articles that a new roof in FL costs 6 figures.
The magic of self insuring is twofold: 1) have no mortgage - pay off your home, & 2) do not touch the $$$s you pay yourself annually which you would have spent on insurance except for emergency home repairs.
I bought an older home(cash), rebuilt it and lived there 25 years. Saved $ 120,000 on insurance. A few caveats: don’t leave house unoccupied. Keep up your yearly service on furnace, electric etc. Don’t buy in flood or hurricane areas.
I lived in South Florida all my life. At 33 I bought a house with cash and 2 years into living there my insurance doubled. I dropped the insurance and lived there for 13 years with no insurance. Never an issue only had soffit damage 1 year and it cost me $50 to fix myself.
You’re lucky so far. A former coworker lost his entire house in Hurricane Alicia outside Miami.
Just make sure you have money saved up just in case.
@@michaelcarter266
...and hope the money is not in an institution that goes upside down and
withholds even a partial amount for months or years ...legal expenses?
@@robertwalker5521what? There are plenty of ways to safely invest large sums of money.
DING,DING,DOUBLE DING!! MAGIC ****33*** AND MAGIC ****13**** SPELL CAST!!❤ WHAT, NO 666??
My 30 year mortgage was paid off almost 15 years ago in 17 years. I immediately cancelled by homeowners insurance.
Smart move. Insurance does not even exist in many countries and they are doing just fine.
No mortgage anymore but I pay $1,800 for a million dollar policy. Because with my luck, the UPS guy will slip and fall on my snowy walkway (New England).
Awesome, what’s your address? Asking so I can slip or trip on your driveway and me and my attorney and medical cost will easily take your house for general damages caused to me because you don’t have liability insurance 😊
@@KentDaGangsta can't take a persons home away in Florida ask OJ😏😏🙄🙄
We self insure. Our insurance went from $4800 to $11,000. No thanks. We had $300,000 of coverage.
Do not renovate, and save the money for storm damages. Live there and be happy.
We don't waste our money on home owners insurance. We live in tornado alley too. It's best to put that money into yourself and save it. We had our roof torn off during a tornado this year...we fixed it ourselves out of pocket. There are still people down the road who did have home owners insurance still waiting for their roofs and property to get fixed. Insurance is a HUGE SCAM!
Is there a reason you didn't build a proper structure like a concrete dome (whose roof cannot be blown off by wind) instead of the usual US house?
Tornado alley guarantees getting hit but wise construction can eliminate damage.
@@Comm0ut Actually tornado alley doesn't come close to getting hit. In fact you're more likely to get hit by lightning in tornado alley than you are to being hit by a tornado. In contrast you are pretty much guaranteed to be hit by a hurricane if you live in Florida.
I love this.
You get insurance to prevent you from going bankrupt if there’s a disaster now insurance alone will bankrupt you.
Like a Health Savings Account (HSA), homeowners should have the option to have such a thing for home wind or flood repair. Why not?
For average American to survive,I think will all need to find alternative means, imagine working for 40yrs to have $1m in your retirement, while some people are putting just $10k in a meme coin for just few months and become multi millionaires. if you don't invest, you're missing out on opportunities to increase your financial worth.
Absolutely right,Money invested is much more better than money saved, when you invest, it gives you the opportunities to increase your financial worth.
Exactly,The key to financial freedom and wealth is someone ability to convert earned income into massive profit to build generational wealth.
You are right to be wealthy you have to trade, earn and live your life as you please, Don't say tomorrow when you can do it now. Don't continue watching others earn when you can.
I'm with you the best way to build massive wealth for the next generation is to consistently invest in business and guard them grow
yeah investment is the key to sustaining your financial longevity but venturing into any legit investment or business without a proper guidance of an expert can lead to great loss too.
My flood insurance premium (TX) was up 81% this year compared to 2021. So I decided to bail (no pun intended!). Not going to pay those thieves for even one more year of coverage...I'm not in a flood plain, I will self insure and take my chances.
If no insurance company will provide you flood insurance at a reasonable price, maybe your house is not so safe from flooding. Lots of houses get flooded out even though they technically are not in flood plains.
You’re going to self-insure and take your chances? Or are you going to be on the news saying the federal government should value out because you pay taxes?
He probable lives on a hill well above the flood plain. Noah and his boat will show up well before flood waters reach his house. He might be in the same Boat.
@@solskengroupllp2758 Word of the day: *Lien*
@@solskengroupllp2758
If you still have a mortgage, then it’s up to you to pay for insurance. Otherwise you’re in default of your loan agreement. At which point the bank will either buy the insurance and charge you for it, or foreclose.
The insurance company wants us ti replace the shingles on our house before they will reisssue the policy. The shingles have a 30 year guarantee and are 12 years old. So we don't have coverage. Paid insurance since we built the house in 1979. Insurance is the biggest scam industry in the world in my opinion. Avoid it at all costs.
Legalized Ponzi scheme! Then they don't go by structure costs for replacement they charge you full assessment for your property, what a scam!!
Florida itself is a scam
Our shingles are from 2004, we had the same situation. I had five companies review it and they all said I have at least five years left.
Yup it’s such a scam until someone gets injured on your property and you don’t have liability insurance 😂😂😂 you and everyone else are such Morons
tried that with me and i have a steel roof. called my agent and he laughed and said its the new drone police. i still have my 95 year old roof.
One of the best decisions I’ve made too! Paid off the house, dropped insurance very similar to these folks, put the insurance cost away along with the same amount the payments were. All I’d have to do is obtain my permit and get her fixed. And well before others who have to bend for the insurance companies. They can’t even do a thing except watch their home mold; four or more times the cost of the original damage.
Extremely interesting and informative.
We did the same. I live(d) on Fort Myers Beach. We had minimal damage but still aren't back into our home yet because of infrastructure issues. Our insurance, Flood, Windstorm, and Property still hasn't paid one single cent. When renewal came last month, we dropped all of the policies except liability.
The building went through 50 years of hurricanes. This was the first time one took it out of service. We are just going to invest the money we would have spent and self insure.
If you don't mind,
I'd like to know which insurance company you use for a liability policy. And the coverage amount and policy price.
I have an umbrella policy on my farmers insurance auto policy.
I'm sick of insurance costs and property tax, we're in TEXAS.
Thank you in advance.
@@kf5hcr176 my FMB condo is insured by Chubb. I had to go with Assured Partners for my temporary condo as they were one of the few writing policies immediately after the storm. Best of luck!
i feel the same. my car insurance price has doubled in 2 yrs...and its going up again come this feb. and all i carry is libility, uninsured motorist (we all know why), towing, and comprehension (for the deer that run at night here in north texas)...and i drive a 05 crown victoria. fyi its 540 every six months, no wrecks no tickets.@@kf5hcr176
As long as you can afford to cover any losses, power to you.
Swing a hammer. People used to build their own homes.
Even if you can't, it shouldn't matter. And no, the taxpayers shouldn't have to foot the bill.
The more people stop paying for protection, the more the cost of protection goes down. And then the cost of building materials goes down because insurance companies don't have money to throw around. Plus, less people committing insurance fraud.
You seem to think you can take out more money than you put in. Moron...
Actually it doesn't matter if you can afford to cover the losses. Chances are about 100% after a hurricane FEMA will make you a low interest loan to fix your house. Guaranteed the payments on that loan(should you ever need it) will be way less than premiums for hurricane insurance. FEMA also gives grants for people to make repairs, but that's hit or miss and it's usually only enough money to cover the average deductible on hurricane insurance, the loans are a sure thing.
@@THX..1138 FEMA shouldn't be doing this.
Makes a great argument for living in a travel trailer. We stay where ever we want without the exhorbitant property taxes, homeowners insurance and utilities .
yeah, don't for one second think that living like that hasn't crossed my mind, solely for the reasons you state. But those trailers aren't designed long term and are subject to constant repair, etc, just like any vehicle.
Deductible for insurance is the BIGGEST scam to ever exist.
I have an acquaintance with a second home in Florida. His insurance rates went up some ridiculous amount this year, something like $25k a year. He said screw it, I'll take my chances.
Of course, he owns it outright, so no Bank/Mortgage involved.
He made a smart decision! 💯
@@Chutney1luv
He will find out if he made a smart decision when he sells the property and didn’t get wiped out by a hurricane.
I don’t understand how Florida has residents.. the worst place in the country to live.
@@neilkurzman4907at $25K/yr he could probably afford to reinforce his home and pay out of pocket for any repairs and still end up ahead.
@@Helmuesi911the worst place…come to Baltimore…Charm City…the city that reads…murder central.
I am seriously thinking of not renewing my wind and hail insurance because the prices go up every year because the housing market is so inflated. What gets me is when housing deflates, insurance never goes down, it continues to climb. We had hail damage and our insurance was not going to pay for a new roof when eight other homes on our block got new roofs for the same hail storm...we fought with them and won, but we will never forget!
Yes, they will pay for attorneys and court costs to fight you over your own money though.
They say insurance rates have to rise to cover inflation, but they rise when there is no inflation.
Yes. I had a claim for hail damage and they denied it. It took over a year and hiring an attorney to get my roof replaced. Of course, my insurance went up!!
The market may deflate but the cost replace your house will not deflate.
absolutely, I've never seen a premium go back down once raised. Mine was raised 2 years ago due to price of building materials going up due to pandemic. Well supply chain issues have pretty much been resolved but they sure didn't lower that premium. In my region housing has not gone up by that much compared to other regions and they use that excuse to keep them inflated.
I was in the mortgage industry for over 35 years and it never ceased to amaze me just how much insurance companies charged for mandatory flood & wind coverage (which are two separate policies outside of homeowners and in some cases (such as properties in Florida), a homeowner must carry all three policies for the life of their mortgage loan!! Combined, the homeowner could easily be paying $2,000-3,000+ a MONTH just in insurance over the cost of their mortgage, so we’re talking about a $4,000-$5,000 a month expense for an average (small) size home (under 2,400 sq. ft.) in certain locations (not including any mandatory HOA fees)! I can’t understand how people afford that, especially the retirees…no wonder people don’t wear much clothing and drive golf carts everywhere..because they can’t afford anything else!!!
If you have the cash to rebuild …
I live near a lot of water. ocean, bay, four rivers, tidal creeks, … For our first house we were required to have flood insurance. There was an inlet a few blocks away and most of the land is 3 to 5 ft above sea level.
That old guy was right on the mark when you said going bare was the second best decision he ever made, then looks at his wife!!! He is a gem!
best part of this video!!
Well he has to unless he wants to end up in divorce court. The hurricanes won't take his house but the wife will.
:p@@MikodoHizo
@@MikodoHizo no doubt.
Insurance companies are going to shoot themselves in the foot. It’s disgusting what they charge. Then they had the nerve to take money in premiums from people for years, and just pull out of Florida, leaving customers of twenty or more years with no coverage. What other business could take your money for years and years, give you absolutely nothing in return, and then up and leave the state, claiming bankruptcy? It’s down right fraudulent.
I'm so ready for this! They won't be the first companies to go out of business.
People with insurance weren't covered for those years before insurers fled the state? (Or did folks get what they paid for?)
If everyone stood up and say no, insurance companies would back down! Problem: hurricane season every year!
The insurance companies are the canary in the coal mine for global warming. We ignore what they’re telling us at our own peril. They’re telling us that Florida is no longer inhabitable. Whatever home you build will be destroyed every 5 years.
Blame are your greedy neighbors and contractors
i own my house outright and i too save money instead of getting bent over by the insurance company's, hurricane Katrina was a big learning lesson for me about insurance company's and how they are not going to help you like they should. now i see more and more people forced to have insurance via mortgage and having to sell their houses because they cant afford the forced insurance payments
Every time there's a disaster the insurance companies square up and get ready to start making mass denials. Honestly some of these people need to be in jail.
We have a stucco house and our insurance wanted us to cut down a pretty, leafy, healthy tree in front of our home because of “fire concern.” We’re on a busy street and it provides great privacy, it’s beautiful, and we don’t want to cut it down. And it would be incredibly expensive to do so. Also, our home is slathered with cement (stucco) and it only touches the lower story. WHERE IS THE FIRE HAZARD???
So we took a picture of it in winter when it’s leaves had fallen and told them we cut it down 😂 It worked. Jerks.
Not a wise move! If something happens, that will be the First excuse for the denial! Switch companies, and do it this winter, when the tree is barren...
Yeah that guy is right ^ You've just handed them a reason to deny a claim.
As of one week ago, my wife and I made the decision to GO BARE on our Florida home. For us (when considering the rates, the deductibles, and the fact that our insurance company would not insure our house for full replacement value), it made sense.
A lot of people need to check their replacement cost.
My quote had replacement at $190k in San Diego which is way too low.
I would personally just leave Florida and find work elsewhere. That place has too much flooding.
I made them take off what they call replacement value because it was twice what the house cost me. And I wasn't about to pay almost $7,000 a year for a home that's not even close to the water or in a real storm area. My house is already stood for 110 years and it has a great metal roof.
@@ou812true5 true. Especially if you're talking central Florida
@@poollife777 If you don't need replacement value why buy insurance? Might as well go bare. Also why not just sell / cash out and rent?
I stopped in Jan. Screw the donations I was giving to the insurance companies.I live 5 miles from the beach in a 350k home with a new roof and impact resistant windows. My insurance went to $ 9,300. Everyone I know that lives in S.Fl has gone bare.They don't pay for anything anymore. If your roof is damaged, they have the right to repair instead of replace. Residents in Ft.Myers and Punta Gorda are still waiting for settlements. ENOUGH !!!
I have friends in NY and NJ still waiting to be made whole from Hurricane Sandy... over 10 years later.
@@TEverettReynolds So sorry to hear that.
Reminds me of people who build houses on stilts right by the ocean and complain when their house gets washed away😂😂😂😂
i just bailed out of Naples late last year ... hoa fees jumped about $200 (%50)... fees just goes into a vacuum...
I owned a ground floor condo in Las Vegas. The upstairs condo's water heater flooded and damaged my unit. I had never submitted a claim in all the years I owned the condo. After my claim was paid, the insurance company cancelled my policy because I had the nerve to submit a claim!
It's a racket. Too many laws have been passed in favor of the insurance companies. You would think that only one claim would not get you canceled.
@@garybregel4606- Politicians get laws passed because of lobbying and contributions from insurance companies that of course greatly favor the companies.
@@Chainyanker007 Exactly.
Many of us seniors, who own their homes outright, have no home owners insurance. This is nothing new. I haven't had any in 10 years, after I was dropped by my insurance, after 20 years of paying my insurance bill year after year and never ever having a claim.
Ask around.... how many other neighbors have had insurance claims...ZERO!
home warranty is another similar scam, ours refused to replace a dishwasher and kept jury-rigging it over and over until we stopped asking. we replaced the heating unit and the installer from a real company discovered the home warranty company had also unsafely jury-rigged a machine that runs on propane without telling us. if you wanna see a technician take 3 hours to leave your house stressed to the point of almost crying figuring out how to do this for $2 by all means get a home warranty.
@@Suiseisexyyou dont use insurance to pay for dishwasher..this is a big problem in america..everyone using insurance for minor things and wonder why it always goes up..
@@mainegreengrower4209 It's a home warranty, it's supposed to be insurance for appliance repair and bills itself as such. It then forces techs to repair without parts to save money resulting in dangerous jury-rigging. You have low reading comprehension because your leftist school genuinely hoped you'd grow up to be politically irrelevant, which means you're white. See now how did I do that? Magic. Next I'll pull a silver dollar out from behind your ear.
Many people buy just the dwelling policy because getting the wind coverage with a 5% deductible won’t pay out enough anyway. Especially if the land is valuable.
Great story, great advice
legalized extortion.
or choose to live in a state not plagued with hurricanes.
Legalized man made SANDBOX Florida is.
No one is forcing you to buy.
bingo.
Its like having your own insurance. Great idea for people that can afford to do it.
If you can't afford to do this. You can't afford the house.
The point is: They couldn't. But they built up the reserves...and with some luck, played the odds perfectly.
$100,000 isn’t going to rebuild a home, or pay for an injury claim on the property.
@@neilkurzman4907 Yeah if it wipes your house out. If only half destroys it 100k can do a lot of repairs. But yes its a gamble
@@chrisbecker5472
These people appear to have a lot of money. And there’s assuming his Land is worth $500,000.
It’s the same with a car after it’s paid off you don’t need collision, assuming you can afford to repair or replace it.
It does appear that this guy has some type of underlying insurance policy that I would assume deals with non-hurricane related issues. But that means he’s not saving the full $7000.
I stopped paying for homeowner's insurance 10 years ago. Sometimes I wonder if I made the right choice, but the house is only 15 years old and I maintain it to minimize fire risk, so I should be ok. I know several neighbors who are also "self insured", the trend is growing. Modern western society has conned people into wasting so much money on insurance schemes that are only there to benefit the insurance companies. The hardest part is overcoming the mindset that we have to have insurance on everything.
at a minimum i would get Coverage for injuries on your property, especially if you own a dog.
$6,000 a year is peanuts compared to what it costs to build a home these days. If you can't afford the insurance in a high risk state, you cant afford to live there, period.
Yup! Working to pay off my home to eliminate the WASTE of money that insurance is. Pay yourself first.
The amount of corporate greed is beyond out of control. It’s criminal to have kids today. They’re completely screwed
I worked for a major insurance company many years ago. I worked in the auto division but I had friends in the home-insurance department. They said that people in Florida were forced to pay for hurricane coverage, as in it was not optional. But get this; the 4 counties with the highest risk of hurricane damage had to pay higher rates while also being tempted by the offer to lower their cost if they dropped hurricanes coverage. That's right, the 4 counties with the highest rates and the highest risk of hurricane damage were the only ones with the option to decline hurricane coverage while the counties with the least odds of getting hit by a major hurricane had to pay for hurricane coverage.
It's a racket. If you are forced to buy something you don't want, then how can they say it's a free market.
Interesting, I would assume those 4 counties are dade, monroe, broward, and palm beach.
We live in a part of Florida that almost never gets hit but we have to have coverage. Companies base decisions on whether or not your zip code has any water front homes in it anywhere. If it does, they drop everyone in that zip code, even people who are not in any evacuation zones and are high and dry. We have friends who went bare long ago. Every year they enjoy a fabulous vacation with the money they saved. If it goes much higher, we will have to follow them, since we are on a fixed income and food and electricity come first! I know people who still have mortgages who were forced to get food stamps due to having to pay for insurance they cannot afford.
You are spouting complete nonsense, this is not true AT ALL. You can deny windstorm and hail coverage all you want, you just need to sign a disclosure form stating that you understand the risks of denying coverage yada yada. I actually work in the insurance industry and i have a degree in the field
smart on the insurance company when you look at it. if you dont have coverage, you dont have to get paid by them. they still win.
Own our home in ormond-by-the sea, we too are self insured, save the insurance money, and its working OK so far.
This gives a whole new meaning to saving for a rainy day.
I love these two, they are strong, sensible, resourceful and obviously in love ❤ 😊
I think this couple is smart for the decision they made. We don't have a mortgage anymore either and we would have made the exact same decision as they did. Way to take control of the life you work so hard for. Happy New Year to all. 🎉🇨🇦✌️
Same in so cal before Northridge quake. So so so many homes and properties left abandoned after that quake because earthquake insurance was too expensive.
My grandpa is in Florida, he decided to go bare and now there is an outbreak of chlamydia in the senior community he lives in, and at the local YMCA. He went bare, and now he’s paying the price, being patient zero for the worst std outbreak in Florida history.
I recently saw a homeowner in Florida interviewed by a reporter. The reason was that his homeowner’s insurance was canceled. Supposedly because he has solar on his roof. And the reporter said he wasn’t the only one. Solar panels can damage the roof. Especially when the installers do a bad job. I got the impression that if you want solar, mount it in your yard.
Don’t put solar on the roof ! Not worth the problems of roof repair.
Solar panels can be a fire risk also...
Walmart, Amazon, and a couple other companies completely scrapped all their rooftop solar because the dang things kept catching on fire.
Buyer beware.
I'd never put solar on the roof. Just the act of drilling anything into a roof is a potential point of water penetration.
A few years back my boss had his homeowners insurance dropped by the provider, reason? Foot long hairline crack in the cement driveway 50+feet from the house. What a joke.
My HOA put solar panels on the clubhouse roof years back. Hurricane Matthew destroyed the clubhouse in 2017 because of those panels. The roof was ripped off. None of the 125 homes in our community were badly damaged because none had solar panels.
Hell, I paid State Farm homeowner insurance for 30 years without a single claim. In 2019 I had a minor flood claim (sump failure). I went through absolute hell with the adjuster/ trying to get my home repaired. I completely understand their decision as insurance companies are no longer your "friends" - just another shark in the soup........
They were never your friends. This is a business transaction.
It’s not even a business transaction it’s theft
A house is not an asset it’s an liability
SMART man! From beginning to end 👍🏼👏🏼🤩
I just spent a month in Steinhatchee, Fl. demolishing and rebuilding after Hurricane Idailia. The friend I did the work for didn't have flood insurance, and not having it paid him dividends in the end. If he would have been paying flood insurance since 2016, it would have cost him almost $30,000 more to repair everything. His gamble paid off, and it was well worth it. Insurance companies suck and they find any and every reason to not pay a claim. Insurance is and always will be a scam. Especially auto insurance where they have their businesses right next to the DMV.
I agree about home insurance but auto insurance is a different animal. Auto Insurance is important to protect yourself against THE OTHER GUY. He hits you and has no insurance? Yours would cover you. You accidentally hit someone and severely injure them or kill them? I hope you have deep pockets because you are getting sued. ( I say this after coming out of an accident where the other guy pulled out in front of us while riding our motorcycle. He's now out 1M)
You *house* is very unlikely to cause any harm to anyone. So in that case, it makes sense if you can afford to self-insure.
@@marceld6061Sounds like something universal healthcare could take care of or you know. Just affordable healthcare. Really don't need car insurance.
@@meoff7602 So, someone writes off your vehicle and injures you (and in my case, my wife too) and you can no longer work, EVER- "affordable healthcare" is going to pay your mortgage or rent? How will you pay for that "affordable healthcare" when you can't work because your back is broken? How are you going to pay for a wheelchair, or modifications to your home, or any other need you will encounter? How will it even pay for that tent you will be living in once you lose your house?
Now, if you hit someone else, will you be able to afford to pay all of their expenses out of pocket?
@@marceld6061 Pretty sure becoming disabled. Is something that allows you draw from social security. We already have the solution for that one.
@@meoff7602 It sounds like you work for minimum wage. I can assure you that SS doesn't make up for losing $90K/year per person in income. All the best to you. I hope you don't find yourself in a similar situation.
Insurance companies:
(raises insurance rates 40%)
Homeowners:
(stop paying insurance companies)
Insurance companies:
(shocked Pikachu face)
I doubt they are actually surprised. When deciding to start pulling insurance in the first place they likely planned for these contingencies. Few people will revolt and stop paying for insurance.
Homeowners who go bare after Cat 5 hurricane: (sad Pikachu face)
They don’t care if you have no insurance Lmfaoo but your bank will cus you will have to file for bankruptcy
@@magesalmanac6424they won’t care lol sadly that’s what happens when you live in a man made state like Florida
@@Pontiakoscat 5 hits you'll be dead most likely
You can take a fraction of those insurance payments and do a lot of upgrades to protect your house. Hurricane rated roof, roll down shutters, backup power, etc….
More homeowners should do this… Insurance companies would change their rates
"Insurance: Money you pay someone so that, in an emergency, you can be told how THAT isn't covered."
Straight up criminals.
I used to only carry liability on my cars. After 15 years, that savings paid for one of my vehicles. It was like getting a vehicle free. Like they say, it's a risk and not for everyone.
car insurance is a scam too. the value depreciates but your rates go up anyway.
ALL that money would be better off going to a savings account. insurance companies should operate more like banks instead of gangsters asking for protection money.
I'd be nervous doing that with a new car. But I don't bother insuring any car worth under 10K.
I do that now but once I had full coverage on both of my old cars. And both of them got smashed in car accidents that were not caused by me. I ended up getting more back than I paid for either car both times and bought two more cars cash which I still drive.
I live in a 750 sq ft condo in Florida…each unit was assessed 4K this month due to wind insurance premiums…Condo owners do not have a choice to go “bare”..even though I own my unit, many others have mortgages.
I'm not the type to file a claim for anything that's not a total disaster. I 'went bare' for quite a while, choosing a very high deductible, no coverage for anything beyond my balance on the mortgage.
I told the insurance agent, "realistically, if this place takes less than $30K of damage, I'll fix it myself out of pocket, and if it takes more than $30K of damage, I'm going to have it bulldozed and start over with a construction loan."
We pay $6,000 a year in California too. Three years ago it was $1,200 a year. And we don’t have hurricanes. Plus, lived here all my life and never had earthquake damage. It’s ridiculous.
Why do people never say where they’re actually at?
Obviously insurance rates vary drastically in different CA locations.
Still $1200 a year here in Ventura county.
You're helping cover the costs related to damage that helps elsewhere in the state.
Labor and material costs have soared due to inflationary spending and policies of Bidenomics.
$2500/year up here in Tehachapi CA
These companies are taking advantage of home owners and mortgage companies are in bed with them. Every state has its share of bad weather conditions. It'll take some level of intervention to get control of the industry.
@@danielseymour8978
Possibly. The mortgage companies are just trying to protect themselves.
The nature of most mortgages is that in the event of non payment they get to claim the house and can't go after the borrower's other assets.
It's why so many mortgages require you to have "mortgage insurance" if you have less than 20% equity.
The insurance companies have done a poor job calculating risk in Florida.
If they invest the premiums poorly they don't have a proper level of reserves and they can't take out any profits.
Lots of the cancelling based on petty complaints is because they are limited to how much they can raise the premiums.