Lenny, can you provide us with more information about the decision Suul is making? I understand that there are mixed feelings about it. Good evening Josh.
Yes, this is a choice that comes with consequences. However, some homeowners believe there is no alternative. Specifically, this applies to homeowners who have paid off their mortgage.
They are taking a risky decision and choosing to go without insurance. They have the option to not have insurance because they don’t have a mortgage.
This decision is one that Held to Wick Conley made after living in her Lakeland Home for nearly 25 years. Many refer to this choice as “going bear,” meaning homeowners are doing away with coverage altogether.
Conley says she saves $8,000 annually, but the worry remains when a hurricane or storm approaches. It’s not a choice made simply because they don’t want to spend the money.
Realistically, it’s not affordable for them. Conley is not the only one making this decision.
According to the insurance information Institute, 15 to 20% of Florida homeowners are also scrapping coverage altogether, which is higher than the national average of 12%. Insurance broker R CCE believes that the steep price increases might start to stabilize.
They mention that five new insurance carriers are coming into the Florida market this winter. However, they also warn homeowners that going without insurance can be very dangerous.
They give the example of a fire causing a $500,000 loss, where the $25,000 you saved won’t be of any use. Conley understands the risks and is diligent about home maintenance because of it. She ensures that her plumbing is checked, her air conditioning unit is serviced, and overall maintenance and regular check-ups are done.
R CCE mentions that these high prices started around four years ago when Hurricane Irma hit, and the following disasters increased the costs. When it comes to saving money, it is recommended to review your wind coverage and look for any discounts you may be eligible for. Reporting from Tampa, this is Lenny Suul with 8 on your side..