More Americans are bailing on home insurance

While lower-income homeowners blame high annual costs for ditching coverage, wealthier people say they have enough cash on hand to handle rebuilding, so there's no need to pay a monthly insurance fee. David Lazarus explains why that's bad thinking.

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[rachelm]

What is the point when an insurance company can just refuse to pay?

[mrxxbrian]

Most insurance is a scam. Even if you pay monthly/annually they sometimes still don't even help you out in the end.

[Caliberx]

Mortgage companies require you to have insurance. If you don't purchase it, they will purchase it for you, and add it to your bill. Usually, at a much higher rate.

[DanielRojas-nwmv]

Health insurance, Car insurance, business insurance, and home insurance inflation is taking all my income 🧐🇺🇸

[jeffreyscott]

If everybody cancels their insurance, the prices will drop

[mackereljones]

People are foregoing insurance because it’s basically a protection scam. Pay us or you lose your mortgage. You pay faithfully for decades, then they reneg when it’s their turn to honor the contract.

[lauriesica]

Home ownership is no longer an investment, it's a high stakes gamble and not the American dream. It's become a liability instead.

[norcaljim]

We are getting hit in Northern California. 200, 000 home is costing $2400 a year. They said it's because we live in the forest.

[bombaybeach]

I dont blame them. Im a homeowner and just earthquake alone is $1700 a year.

[beelikemizu]

In Cali, people are getting mando dropped because these companies are overall losing money here & finding excuses to drop people, so they're helping everyone save money TBH

[lindakheshiboun]

You pay premiums for a lifetime. Make one roof claim and it get’s refused yet they won’t reinsure you without a new roof!😳

[chaoticallysay]

When they won't cover anything anyways?!

[bigcahuna]

Even if you have your home paid off and are wealthy, aside from the climate possibly damaging or destroying your home, there's always a chance that your property can affect another person's safety or their property. If you don't have at least a personal liability insurance policy, you can risk getting sued.

[bataremerson]

So what happens when your insurance won't cover the damage because it wasn't included in your basic insurance coverage?

[jeraldb]

Odd. When I bought my home a couple of years ago (my first), the lender ‘required’ proof of homeowners insurance. Thought that was true of all real estate transactions?

[stephaniejames]

If you own your home and it's paid off you can take your chances. But if you are still making payments on your mortgage, you will end up with lender placed insurance (LPI) which can be double the amount. Lenders will send you a letter asking you to provide evidence of insurance whether it's escrowed or not. So only those who can pay to rebuild can afford not having coverage.
This guy doesn't know what he's talking about. I work in the mortgage industry and no for certainty as long as making payments, insurance is required.

[bngr_bngr]

Most banks require that a lender keep home insurance current. My house is worth $1.2 million. I pay $600 a year thru AAA.

[zimmermaninsurance]

A home is not an investment unless it generates income. Your home is perhaps your biggest liability.

[NortheastAndRetired]

Most of my friends living in Orlando recently got emails like that from their employers. 😮

[emc]

QUIET QUITTING is only a new name; not a new tactic. Mess with the employee enough so that they will just leave.