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If the flood is concern - get the federal flood insurance - could be helpful - read the limitations though- as far as I recall a certain size area must be flooded for them to pay to a single homeowner; they won’t pay if it is just one home.
There are a number of private companies that offer flood insurance now that have far more coverage (the government plan is capped at a fairly low level) with far fewer restrictions. I dropped the government plan years ago and went with a private company (Lloyd's of London). Lower price and more coverage. There are also private supplemental plans available to increase the government coverage (kind of like the way a Medicare supplemental plan operates), but they tend to be quite expensive. I agree that flood insurance is cheap protection even if not in a flood zone. There are thousands of small lakes here that act as a huge water retention flood control system. And it is largely very effective - until debris clogs up a weir downstream and then everything backs up. That happened to a community less than a mile away from us during Irma.
Everyone who has homeowners insurance. It is part of your homeowners policy. Only way you wouldn't have it is no mortgage and self insure out of pocket on a 100% paid for property. I think even a renters policy contains hurricane coverage.
Ummm no windstorm is a separate rider from your homeowners
My buddy decided to gamble, no windstorm on a 5mm house. Had full homeowners coverage (Fire/theft etc) but NO windstorm. Tornado ripped off his roof, freak storm that hit about a dozen houses including his. 60K for a roof was the opening hit, plus broken windows, plus damaged stuff.
There are a number of private companies that offer flood insurance now that have far more coverage (the government plan is capped at a fairly low level) with far fewer restrictions. I dropped the government plan years ago and went with a private company (Lloyd's of London). Lower price and more coverage. There are also private supplemental plans available to increase the government coverage (kind of like the way a Medicare supplemental plan operates), but they tend to be quite expensive. I agree that flood insurance is cheap protection even if not in a flood zone. There are thousands of small lakes here that act as a huge water retention flood control system. And it is largely very effective - until debris clogs up a weir downstream and then everything backs up. That happened to a community less than a mile away from us during Irma.
But in a really bad flood are those private companies going to be able to pay? The govt plan never runs out of money.
Ummm no windstorm is a separate rider from your homeowners
My buddy decided to gamble, no windstorm on a 5mm house. Had full homeowners coverage (Fire/theft etc) but NO windstorm. Tornado ripped off his roof, freak storm that hit about a dozen houses including his. 60K for a roof was the opening hit, plus broken windows, plus damaged stuff.
His gamble lost.
Windstorm coverage (including hurricanes) is generally part of the homeowner's insurance policy, I know it's part of our coverage and has been with several other homeowner's policies we have had. There is a separate, higher deductible for windstorm coverage, ( ours is 2% of the appraised value of the house, putting it at $8000 or so, contrasting with other property losses, ie, fire, theft, vandalism which is a $1000 deductible).
There may be some insurance companies that don't cover windstorm damage in their homeowner's policies as a matter of practice, or don't cover it in certain areas or for dwellings over a certain age. We had State Farm homeowner's insurance in Miami, and after Hurricane Andrew hit there in 1992, State Farm took windstorm coverage off our policy and we had to get a separate windstorm policy from Citizens. They may still do this with some policies in certain location, but I've not seen in this location.
I don't know if a policyholder can opt out of hurricane coverage when selecting a homeowner'spolicy. What I have seen is a choice of a higher windstorm deductible ( up to 10% or so of a dwelling's appraised value) which would pretty much exclude the hurricane coverage except in instance where extreme damage has occurred.
Too bad about your buddy. Points out the need to actually save the money for future repairs if one intends to go without insurance. Insurance is admittedly a pain in the you-know-where, but when you need it and they come through with the promised coverage, it's a life saver. Ask me how I know....
But in a really bad flood are those private companies going to be able to pay? The govt plan never runs out of money.
I don't think there are any worries about the financial condition of Lloyd's and its ability to pay claims. They are in better shape than many of the insurance companies writing policies in FL. The government plan caps are quite low and they don't cover much which is the reason I switched.
Our EscapeWinter house is up I-75 ~85 miles north of Naples, but we spent our first 8 winters in Naples 2005 to 2013...
Then, and now we carry 'some' Cane insurance but with high(er) deductibles than many might, and much higher deductibles than one would with a mortgage.
Different insurance companies then vs now, but have had no problem 'keeping' the same ins underwriter here on our Venice area winter house for past several years, via same agent here.
No ins expert, but if one does not have a mort/required insurance level(s), one might check into 'Cane insurance options in terms of higher deductible/reduced coverages et al.
As some posters have considered over the years, here and on other FL boards, I think about doing a full 'self insured' approach, but to keep my liability umbrella on both our SW FL house and Mtn home, our umbrella coverage requires certain coverage on our FL house; so no self insure, not worth the liability risk.
GL, mD
This is why we recently dumped our $5M umbrella policy. The Umbrella policy provider requires very high coverages for auto, & home beneath theri umbrella to reduce theri exposure. That drove out prices up too much.
As soon as our Son legally left our nest, we dropped the umbrella, & reduced our auto & home coverages.
After our home did so well in Ian, we cancelled flood. We never had hurricane coverage specifially, but do have a policy that cover "wind driven rain", which is common damage caused by 'canes.
There are too many variables for people here to tell others what to do w/ their insurance coverges. WE can share what we do and why, but we'd need a lot more info to tell others what to do...like age and contruction details of the home, and the flood zones for starters.
Also, if you have a mortgage or not, & how much would a large loss impact you financially overall.
This is why we recently dumped our $5M umbrella policy. The Umbrella policy provider requires very high coverages for auto, & home beneath theri umbrella to reduce theri exposure. That drove out prices up too much.
As soon as our Son legally left our nest, we dropped the umbrella, & reduced our auto & home coverages.
After our home did so well in Ian, we cancelled flood. We never had hurricane coverage specifially, but do have a policy that cover "wind driven rain", which is common damage caused by 'canes.
There are too many variables for people here to tell others what to do w/ their insurance coverges. WE can share what we do and why, but we'd need a lot more info to tell others what to do...like age and contruction details of the home, and the flood zones for starters.
Also, if you have a mortgage or not, & how much would a large loss impact you financially overall.
We as owners, do not have a choice on this if we have mortgage on home/condo.
This is why we recently dumped our $5M umbrella policy. The Umbrella policy provider requires very high coverages for auto, & home beneath theri umbrella to reduce theri exposure. That drove out prices up too much.
As soon as our Son legally left our nest, we dropped the umbrella, & reduced our auto & home coverages.
After our home did so well in Ian, we cancelled flood. We never had hurricane coverage specifially, but do have a policy that cover "wind driven rain", which is common damage caused by 'canes.
There are too many variables for people here to tell others what to do w/ their insurance coverges. WE can share what we do and why, but we'd need a lot more info to tell others what to do...like age and contruction details of the home, and the flood zones for starters.
Also, if you have a mortgage or not, & how much would a large loss impact you financially overall.
We pay < $1500 a yr for a $2 Mill Umbrella.
We maintain the minimum 'coverages' on our Escape Winter house in SW FL, more coverage on our NC Mtn home, to 'be allowed' to pay/keep that umbrella.
Auto coverage is based in NC, and we have v good coverage, but high deductibles on 'accident repair', et al.
Having an umbrella is one's choice...we have never made a claim of any kind in ~ 40+ yrs, but I agree that 'insurance' and the v large outlays of cost(s) for insurance of all kinds over the years, is paying the piper that has never shown up to pipe. But, we prefer that umbrella.
Those with a mort have little choice other than to dodge/cancel 'coverage' and hope they are not found out or have a large loss. We have been mort free for decades, but still prefer some coverage, esp that umbrella.
GL, mD
We maintain the minimum 'coverages' on our Escape Winter house in SW FL, more coverage on our NC Mtn home, to 'be allowed' to pay/keep that umbrella.
Auto coverage is based in NC, and we have v good coverage, but high deductibles on 'accident repair', et al.
Having an umbrella is one's choice...we have never made a claim of any kind in ~ 40+ yrs, but I agree that 'insurance' and the v large outlays of cost(s) for insurance of all kinds over the years, is paying the piper that has never shown up to pipe. But, we prefer that umbrella.
Those with a mort have little choice other than to dodge/cancel 'coverage' and hope they are not found out or have a large loss. We have been mort free for decades, but still prefer some coverage, esp that umbrella.
GL, mD
Generally, at least in my experience, haven't had a mortgage since we sold our house in Miami in 2012, and that was a HELOC,
the premiums for property insurance are paid by the mortgage company out of the escrow account maintained by the mortgage company, as are the annual property taxes. I'm assuming it's done this way so the lender can ensure the property has sufficient insurance coverage, and property taxes are paid, as the lender will inform you, to "protect its investment". I'd think it would be pretty hard under these circumstances to dodge or cancel one's property insurance with a mortgage-I'd think the insurance company would notify the lender in that case as they have the lender's name and contact information as well as the property owner's. If that happens the lender will contact the property owner, with a message to obtain sufficient property insurance...or else... the lender will get insurance and it will cost the homeowner significantly more than the old policy did.
And even if there is no escrow account ( we didn't have one with our HELOC) and it's up to the homeowner to pay the insurance and taxes directly, as I recall we still had to supply the lender with the property insurance information, and the insurance company with the name of the lender. That isn't something I'd think "dodging/canceling" the property insurance would be very successful at doing, as lying to the lender about having insurance coverage when you don't might be considered breaking the terms of the contract ( mortgage) and the lender could call in the mortgage, and you'd owe the entire amount of the loan immediately. Anyway, I would not risk lying about this stuff.
^ We have never 'dodged' having good house insurance when we had a mort, decades ago, and I was not suggesting one should let house ins lapse if one has a mort...but I know a few people that have done so and have not been 'caught'.
No morts here for decades, but still have 'good' house coverage on both of our houses, inc an umbrella.
Don't understand you post; I was not pitching 'no insurance', with or without a mort...
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