No Homeowners Insurance? No Problem

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?

======
======
I offer 1 on 1 calls, book one if you'd like!
======
My Filming and Editing Equipment
======
Sign Up for My Email list and Get Weekly Video Updates in Your Inbox!
======
Get Cash Back on ALL your Internet Purchases!

Articles Mentioned in the Video

FTC Legal Disclaimer - Some links found in the description box of my videos may be affiliate links, meaning I will make commission on sales you make through my link. This is at no extra cost to you to use my links/codes, it's just one more way to support me and my channel! :)

[tatianastarcic]

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.

[Floridawoodsbanshee]

How many people feel like the United States of America is one big milking station???

[victoranski]

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

[TheNoise]

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.

[sonyamoste]

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).

[xpscsuc]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.

[yellowbird]

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.

[oldroscoe]

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.

[nowthatsfunny]

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.

[rafars]

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 unlikely to happen.

[TV-rmzc]

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.

[jjbww]

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.

[veganc]

A friend of mine and her husband has not had home insurance for 25 years and everything is fine.

[stphinkle]

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.

[aeg]

My husband almost stopped wearing his Barclay sunglasses after your last 2 episodes. He is happy you rocked em again.

[oneemotiva]

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.

[EastsideGardening]

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.

[jgilldrafting]

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.

[tomkopf]

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

[davidshock]

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.