Florida couple saves $100,000 after deciding to 'go bare' by not purchasing wind and flood coverage
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- Опубликовано: 4 окт 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.
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
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
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
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.
How do I reach out to one? my assets have been struggling since 2022 and I’ve been holding on by the skin of my teeth.
Don't be hesitant to contact Sonya Lee Mitchell and follow her directions.
Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
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.
"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.
Self insured is becoming less risky than dealing with the insurance companies.
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.
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.
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.
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
I love this.
You get insurance to prevent you from going bankrupt if there’s a disaster now insurance alone will bankrupt you.
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
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 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. 🎉🇨🇦✌️
What a shame what these criminal politicians have done to all of us with their corporate buddies!!!!😮
We let them. We keep electing ppl based on ideology rather what they have proven to do for us.
Yep..... who are they supporting now for president the idiot that believes social security is an entitlement while he fleece's people for millions while he flies around in a 747 unreal, people are so gullible!@@kerrissedai6857
Not political, it's basic business, The problem is lawyers and false claims on top of being in an eco disaster area. The insurance companies don't need to be there either. Not to defend that our politicians aren't totally corrupt. Just this isn't their expertise of crime
@@danasmith858 To be fair, I've heard many times, it's the LAWYERS who file frivolous claims that all businesses, especially insurance companies dread. They can't even fight a BOGUS claim and they settle because it costs too much money to hire their own lawyers to fight something that is obviously false. The LAWYERS are the reason we can't have nice things. But half of all politicians are lawyers, so we're not going to get any tort reform any time soon.
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.
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! 🙂)
Great idea for someone who has the money! AND, IT SPEAKS volumes to insurance companies gouging people without lifting your middle finger!
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.
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.
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.
Um, I haven't had ANY homeowners insurance on my home in over 30 years! Can't get it! The companies demand so many expensive 'standards', I'd have to rebuild my entire house! Some of the demands were flat out ridiculous! Like, painting a freaking back door!
I live in Florida in the middle of the state. I financed through a private entity and paid it off.
That old man going bare was his second best decision he ever made and quickly looks at his wife hinting she was the best decision he ever made in his life was really adorbs
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 got dropped for not having a door on my garage and I am inland. It is an unattched building and I only wanted the house insured. I go without insurance now and just save the money.
Love it!!
These people are Mavericks I love them!
We got to keep fighting back against these nasty insurance conporations and banksters!
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.
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.
USAA has gone down hill. Have been a member for 35+ years. Never filed a homeowner's claim. They raised my rates 26 percent this year. Told them to stick it. And I don't live in an earthquake, flood, tornado, mud, or hurricane area. They ruined it when they opened the program to so many people, plus the expensive advertising.
Loved seeing this couple do this! Very smart. Cheers to them both. 👏
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.
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
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.
I purchased a lot in 2021 in NE Florida. Before I bought it I looked at FEMA maps to make sure it was not in a flood zone. I built on it last year and its all up to cuurent code - concrete block construction, roof and windows rate for 150 mph. I moved in last fall and for full coverage with $1,000 deductibles it was $820 a year. The agent said since its new construction (those up to date codes again), concrete block, a "high and dry" lot and on the west side of I-95 made the difference in the rate. I'm still a 20 minute drive from the beach, but I dont have to pay the ridiculous prices to enjoy it. You can still have a reasonably priced home in Florida, you just have to temper your expectations about location and do a little homework.
The older your home gets, insurance will skyrocket, even in NE FL, Jacksonville specifically, as well as auto insurance, in all of FL.
@@thereserivera7691my house is 110 years old and my insurance is only $2,400 a year in Jacksonville.
I have a feeling you're going to be hit with a much higher bill when you go to renew. Something is definitely off if it's a brand new home they have to get you for replacement value.
@@poollife777 It had it's replacement value figured in ($315,000 - smaller 1,450 sq ft house, cheaper part of the Florida). I have been told it will creep up every year though as the house ages.
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
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.
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.
I moved out of Tampa to Virginia in 2015; my expenses for all the basics; insurance, utilities and groceries dropped drastically! Florida May not have a state tax, but the cost of living is way higher!
That's cool of the guy looking left when he says "second best decision I've ever made". You could pick up on the fact they've been together a while and actually loved each other. It's nice to see normal people on TV that aren't trying to prove anything or pretend to be something they aren't.
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.
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
It’s been a year and a half since Ian. I know many people and businesses that are still trying to get their insurance companies to cover repairs. Even our church is battling insurance!
These insurance companies need to scale back employees rather than keep raising our premiums to cover their overhead..
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.
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😏😏🙄🙄
Loved his answer about the best decision… way to go!
Great idea 💡 👍 save your money and repair it yourself. 👍
Drywall isn't hard to install.
They seem like smart and kind people.
Or lucky, but yes I agree that if I was in their shoes that seems like quite a reasonable option.
@@listenupfoolionot funny
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
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 ?
It's called self-insurance and you can actually do it with car insurance too in certain states.
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.
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.
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.
I have thought about moving some place that's warmer than Minnesota but after looking at all the things that can go wrong else where. I think I will stay home and just take short vacations to many different places.
Mee too. I'm in Louisiana. My price increases by over 100% with wind/hurricane. I decided only to get liability/theft/fire coverage for a fraction of the full coverage. If you are on a mortgage that might not work.
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.
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.
$7,000 annually.
$20,000 deductible. Easy decision. I know a well prepared home will ride out hurricane winds, but if storm surge or major flooding is possible due to location. Buy insurance or move.
Very smart of this couple.
Even if you do keep full insurance for many years and never had a claim there is no guarantee that the insurance will pay if you did have a huge loss. They rarely pay because they have a long list of tiny loopholes that allow them out of paying the claim.
I work in insurance. They told us to "keep pushing rate, we haven't found the rate cieling yet". Translation my executives want to bend you over on home insurance and keep making money.
Which company is that?
Where are competitors coming in and undercutting the big guys? Oh, they can’t afford it. So it’s not profits, folks.
@@uisblackcatit’s part of our job to report competitive intelligence as a underwriter. We get quotes from other companies and report it up to management. If one company goes up 30% we can go up 25% and still be lower. Then the state of Florida is so free market they always approve the higher rates for whatever reason the companies give.
@@Bradimoose Most insurance companies want to come out to the property and check it out before they give you a price.
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.
@@hiloviking Exactly.
Extremely interesting and informative.
Insurance in Florida is beyond crisis level. It was very affordable for the past 30 years of my life then a few years ago somehow the rates began to sky rocket EVERY year!
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.
Our house was robbed. Insurance company trying every trick in the book to not pay us what they promised. I’ve been jumping through multiple hoops and here I am still waiting…
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.
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.
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.
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
Insurance companies have found our the breaking point.
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.
People are still fighting claims from Ian a year ago. FL is a sad state
I just won a court claim with insurance company from Irma four years ago. I've being waiting for backorder roof tiles for a year. I decided to not let the crooks get away with not paying and dumping us after 15 years paying with no claim.
It's not Florida - it's the insurance companies.
Has nothing to do with the state, its these penis blowing insurance companies
No, it’s both. If Florida didn’t have such volatile weather it wouldn’t be an issue.
@@magesalmanac6424you should really do some research Skippy
My Mom lives in Pensacola and I told her to stop paying the outrageous insurance rates. She had two claims in over 25 years with Allstate and they jacked her rates higher and higher. I told her to stop paying home insurance because it's not worth it.
The main question is: should insurance companies be allowed to invest such a huge percentage of the collected funds into the stock market and other investment instruments? I think the answer is strict no.
Neither should they be paying dividends to owners or parent company (big bank etc). The owners should be insurance takers. Part of the collected money should be invested into risk reduction among the participating houses. It literally pays back thousands of percentages better ROI than the stock market when you can reduce the number of houses being burned down (smart fire alarm) or flood damage (flood barriers, car flood protection "bags" etc.)
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
We live at the top of a rise in the topography putting our home 150 ft above sea level and and almost 80 above the surrounding area. Insurance wants additional 5k a year for flood coverage. We decided to bank that money instead of watching it go into the insurance company's pocket. This tactic isn't for everyone but it's really paid off for us.
It's not the same subject but I did a similar thing with my vehicle purchases. I made sure the title had no lien so I could purchase whatever insurance I want. I then put the savings into an account to cover another vehicle or repairs. And no I did not have cash to buy vehicles. I used no interest 3% transfer fee credit card offers. Credit cards don't require liens.
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.
Insurance is another criminal entity
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.
Insurance companies will only pay for the damage that was caused by fire. That does not include the concrete foundation, pipes in the ground or landscaping.
Why pay for the service when the service is designed to shirk all responsibility?
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.
I love these two, they are strong, sensible, resourceful and obviously in love ❤ 😊
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.
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.
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 had my home built in 2000 in the upper-midwest. i'm well-off enough to afford the 250,000 price tag (lucky i built then since the same home and 4 acres of land probably costs triple that now!). with no mortgage, i opted for no insurance. in the 24 yrs i've now been here, i've never had need to file a claim and have saved (on average and based on rates here in those 24 yrs) around 30,000 dollars. i don't advise everyone (without a mortgage) to do this - but, it's worked for me.
My friend Rey in Tampa has 9-10 homes rented with no insurance. These are the same people who convince you to buy life ins., who now are giving you a fraction of the money to " cash in"
and sell it. Remember the adds who are saying you live over a gold mine?
Your friend is setting himself up for some big issues in the future.
They take your money every month but, fight you tooth and nail to keep from having to give any of it back.
What they did is smart all the way around. They basically created a growing fund that was essentially an insurance policy with the added benefit of keeping anything they don't use. Show me an insurance company doing like that.
My grandparents on my dad's side never believed in insurance. They never had to file a claim.
Anybody want to weigh in on how the “ambulance chasing” attorneys around America have contributed to rising insurance costs? It’s not just hurricanes raising rates.
Great point. The injury/accident liars fight the installing of video cams in our autos.
Floridian here! This is all criminal…🤬😡. I’m waiting to get hit with a gigantic increase from Citizens. Remember we’re not able to shop carriers. We’re stuck with Citizens.
Pray for Florida Homeowners.
If I could I’d pay off my home so I could do this. Even retirements a bitch right now.
👍Great for them not letting the insurance take them to the cleaners.
This is a very smart move for homeowners that own their property free and clear with no mortgage or equity line of credit and have enough money that they can write a check and pay for rebuilding their house. A policy with a large deductible ($250,000 or more) is another avenue worth exploring, Be sure that you purchase an umbrella liability policy with enough coverage to protect all your assets in case something crazy happens and you get sued.
This is true I never understood why people would spend 250-400k to buy a house in a place where the weather is going to be more frequent and worse.
My home owner rates have skyrocketed. We're in an area that is considered a fire hazard. We have super large clearings around both homes & 1 house is steel studs, trusses & a tile roof. Looking forward to canceling the insurance. It just takes too much of our income to give it to the insurance company. We had one small claim 20 years ago & we were denied. In the last 30 years they have made hundreds of thousands off me. Soon no more.
@@garym1199or you can just make sure they can come and check that you have taken steps to diminish your chances of liability. They listen if you talk.
I like how the insurance guys solution is to bundle even more insurance as if that would somehow end up costing less.
Security First Insurance Company in 2017 rejected our claim for rental in Daytona beach after hurricane without any reason.
This gives a whole new meaning to saving for a rainy day.
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What a terrible year it is…
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