Just got a notice from State Farm that my premium will be increasing by 300% (4x what is now). That seems excessive!
I can't help wondering what would have happened if back in 2000, I invested the monthly premiums in an S&P 500 index fund instead of paying for a homeowner's policy and used that account to cover any damage or replacement in that time? There was no way to know back then what the future held but in hindsight I would have been OK I think.
With the huge premium increase coming, I'm seriously considering self-insuring now or maybe there are some private insurance pools or community run insurance pools that exist to help spread the risk.
I've been in the same house for 24 years with only 2 minor claims in that time but nothing in the last 5 years. I'm pretty sure it's the CA fires they're concerned about but in the 24 years I've been here, there haven't been any homes in our area affected. I'm not saying fires aren't possible. There have been a few that have threatened the area but so far none that have come through and caused any home damage.
Any thoughts?
I can't help wondering what would have happened if back in 2000, I invested the monthly premiums in an S&P 500 index fund instead of paying for a homeowner's policy and used that account to cover any damage or replacement in that time? There was no way to know back then what the future held but in hindsight I would have been OK I think.
With the huge premium increase coming, I'm seriously considering self-insuring now or maybe there are some private insurance pools or community run insurance pools that exist to help spread the risk.
I've been in the same house for 24 years with only 2 minor claims in that time but nothing in the last 5 years. I'm pretty sure it's the CA fires they're concerned about but in the 24 years I've been here, there haven't been any homes in our area affected. I'm not saying fires aren't possible. There have been a few that have threatened the area but so far none that have come through and caused any home damage.
Any thoughts?
Statistics: Posted by geobrick — Tue Mar 05, 2024 12:51 am — Replies 1 — Views 268