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Started By
Message
Avoiding homeowners insurance.
Posted on 5/7/23 at 11:27 am
Posted on 5/7/23 at 11:27 am
I feel like we need this topic stickied, so people can discuss and reference ways they can avoid the stupid high insurance premiums we’re seeing in south LA.
Not talking about legislation or regulatory changes. I’m talking about creative ways a person can lower their premiums as it seems clear to me that wind coverage premiums no longer reflect fair risk.
So, here is what I’m looking into:
- Paying off mortgages and going with ACV policy
- paying off and going with all coverage but storm coverage
- paying off mortgage and getting land only loan to avoid FHA coverage requirements
- getting some kind of private loan from local bank that will avoid FHA insurance requirements
Any other ideas?
Not talking about legislation or regulatory changes. I’m talking about creative ways a person can lower their premiums as it seems clear to me that wind coverage premiums no longer reflect fair risk.
So, here is what I’m looking into:
- Paying off mortgages and going with ACV policy
- paying off and going with all coverage but storm coverage
- paying off mortgage and getting land only loan to avoid FHA coverage requirements
- getting some kind of private loan from local bank that will avoid FHA insurance requirements
Any other ideas?
7
Posted on 5/7/23 at 11:34 am to Dandaman
Good luck with that.
Posted on 5/7/23 at 12:40 pm to meansonny
I got a private loan on one rental property. 10k citizens policy RCV vs 2.5k with other insurance for ACV policy. I have brand new roof on the property
Posted on 5/7/23 at 4:03 pm to Dandaman
quote:
So, here is what I’m looking into: - Paying off mortgages and going with ACV policy - paying off and going with all coverage but storm coverage - paying off mortgage and getting land only loan to avoid FHA coverage requirements - getting some kind of private loan from local bank that will avoid FHA insurance requirements
You should look into renting
Posted on 5/7/23 at 4:31 pm to Dandaman
Pay off mortgage and self insure.
But that’s not likely for most people.
But that’s not likely for most people.
Posted on 5/7/23 at 6:15 pm to Dandaman
Pay off your mortgage and put a fire policy on it. You can then pay for any wind damage and resulting damage from wind losses. It’s cheap but I assure you will pay out more than you pay in premiums. Cancel flood too and self insure that. Floods don’t happen in Louisiana either. Buy earthquake it is cheap in LA.
Posted on 5/7/23 at 8:56 pm to MsState of mind
quote:
paying off and going with all coverage but storm coverage
I’ll be doing this… soon.
Posted on 5/7/23 at 9:29 pm to Chad504boy
quote:
You should look into renting
You sell insurance, right?
Are you an actuary, too? You feel that insurance is a good deal right now?
Perhaps you have something to contribute rather than telling me to sell all of my properties and rent.
My point is that I’ve now been through All storms from Katrina through Ida in SELA and my properties have sustained only minimal damage. Less than 10k each time out of pocket for me to address wind damage.
Why would I pay 10k a year for this risk?
Posted on 5/7/23 at 10:04 pm to Dandaman
Kitchen repairs are running 20k to 30k. That's just a leak in the kitchen.
Repairs have doubled in the last 2 years. There are no such things as small claims anymore.
There is a reason why the insurance is so expensive. If you feel they are hoarding the cash... just say screw em and find ways to self insure.
The average home has a claim every 15 years. Most homeowners will have 2 to 3 during the course of their lives.
Repairs have doubled in the last 2 years. There are no such things as small claims anymore.
There is a reason why the insurance is so expensive. If you feel they are hoarding the cash... just say screw em and find ways to self insure.
The average home has a claim every 15 years. Most homeowners will have 2 to 3 during the course of their lives.
Posted on 5/7/23 at 10:05 pm to Dandaman
I did it... 60k deductibles is crazy... some new shingles and new fence...
Posted on 5/7/23 at 10:13 pm to Dandaman
quote:
My point is that I’ve now been through All storms from Katrina through Ida in SELA and my properties have sustained only minimal damage. Less than 10k each time out of pocket for me to address wind damage.
Can it be reasonably be assumed that the most damage that can occur in your situation (and likely similar to mine as well) would be a roof replacement due to wind or hail damage?
Posted on 5/7/23 at 10:20 pm to meeple
Yes. I have not see more damage to other houses except tornado or poorly maintained houses with old roofs.
Posted on 5/8/23 at 3:34 am to Dandaman
So what happens when you’re at work/ on vacation and the hot water heater blows and you come home to 60-70K in water damage?
Posted on 5/8/23 at 7:07 am to lsufan1971
Not a wind claim
Posted on 5/8/23 at 8:04 am to Dandaman
quote:
Are you an actuary, too?
I am not. But i see you feel you are only using yourself in your calculations.
quote:
You feel that insurance is a good deal right now?
of course not. market sucks right now. would i still recommend going without it. Probably not. One wind event could result in roof damage that leads to major water damage. On top of carrying liability on home.
quote:
Perhaps you have something to contribute rather than telling me to sell all of my properties and rent.
well renting in this climate is pretty decent advice for a lot of families out there. If you're a landlord, the cost is going to eventually melt into raising rents in the area and justifiably so.
quote:
My point is that I’ve now been through All storms from Katrina through Ida in SELA and my properties have sustained only minimal damage. Less than 10k each time out of pocket for me to address wind damage.
but that's not an accurate picture of the area. residential claims are messy. they often get tied into a lot of litigation.
quote:
Why would I pay 10k a year for this risk?
its the market value of coverage at this time. If you choose to risk it, that's a personal decision. I know insurance seems unaffordable right now, but not having insurance is more of an unaffordable option for many homeowners and families out there too.
Posted on 5/8/23 at 8:55 am to Dandaman
quote:If you have a stripped down ACV fire policy, there's a good chance that you will not have water damage coverage
Not a wind claim
Posted on 5/8/23 at 12:50 pm to Teddy1388
quote:
you have a stripped down ACV fire policy, there's a good chance that you will not have water damage coverage
I don’t think that is up for debate in this thread. I thought this was about not carrying windstorm/hail, or flood insurance.
Posted on 5/9/23 at 9:14 am to Dandaman
- paying off and going with all coverage but storm coverage
Carriers will likely not allow this path. All the carriers I write through will cancel the fire if you don't have wind coverage as well. If the risk is not properly insured they won't want the risk. Sure there may be a few carriers out there that do this, but unless you have enough cash in the bank to self insure there really are no great options out there.
ACV policies don't save as much money as you would have to come out of pocket for in the event of a loss. You would save a few hundred to a few thousand a year, but again you are assuming more risk.
The whole reason to have insurance, outside of the mortgage company or government requirement, is so that the risk is assumed by someone one other than yourself. If you have enough cash on hand to not have it and are fine parting ways with that cash should you have that total loss then I would say go for it! I currently pay a bit over 8k a year for my homeowners. Only reason I would ever make a claim would be in the case of a major loss, but many people out try to use their policies as a way to replace an old roof, so they don't have to pay for it, carriers are starting to crack down, and the rates are reflecting the market in our area. I know it sucks, but until people stop making claims for a thunderstorm to replace their 20 year old roof, we are going to continue to see these kinds of rates in our marketplace!
Posted on 5/9/23 at 12:47 pm to meeple
quote:Most carriers that will write a fire only policy, will require proof of wind/hail or they will cancel the fire only.
I don’t think that is up for debate in this thread. I thought this was about not carrying windstorm/hail, or flood insurance.
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