Mortgage: $43k balance @ 3.25%, 3 years left, no other debt
HELOC: $10k balance @ 7.25% paying effective 2.25% receiving 5% interest on EF
Emergency Fund: $156k
State: SE Florida, 1/4-1/2 miles from the ocean
House value: $850k, Most of the value is in the land. House built in the 50s
My existing home insurance carrier decided not to renew my policy because they are mitigating risk in the area. Paid $7k home insurance this past year and received an updated premium quote of $15k at 5% hurricane deductible from a different carrier. At what insurance premium amount does it make sense to self insure taking into account insurance deductible? I could pay off house and self insure. When does it become home insurance become too expensive? What is the break even point taking into account the probability that a natural disaster will actually take place?
According to insurance company cost to rebuild is $375k, I highly doubt the foundation and walls would blow over and it would be a total loss. I also carry flood insurance. My Roof is older but not leaking. I have impact windows/ doors, but not impact garage door. I’ve heard from other people in the area that redoing their roof saved them $100 on their home insurance premium, insignificant savings. Keep in mind insurance company would only cover 40% of my roof based on age of roof. By the time deductible gets taken into account, I would be receiving a minuscule amount if I would lose my roof.
I would still carry fire and liability insurance. I need to find a new insurance carrier in the next 3 weeks. I’m still shopping around, but probably new premium amount will over $7k. Insurance premium cost has been going up every year.
Thank you in advance
HELOC: $10k balance @ 7.25% paying effective 2.25% receiving 5% interest on EF
Emergency Fund: $156k
State: SE Florida, 1/4-1/2 miles from the ocean
House value: $850k, Most of the value is in the land. House built in the 50s
My existing home insurance carrier decided not to renew my policy because they are mitigating risk in the area. Paid $7k home insurance this past year and received an updated premium quote of $15k at 5% hurricane deductible from a different carrier. At what insurance premium amount does it make sense to self insure taking into account insurance deductible? I could pay off house and self insure. When does it become home insurance become too expensive? What is the break even point taking into account the probability that a natural disaster will actually take place?
According to insurance company cost to rebuild is $375k, I highly doubt the foundation and walls would blow over and it would be a total loss. I also carry flood insurance. My Roof is older but not leaking. I have impact windows/ doors, but not impact garage door. I’ve heard from other people in the area that redoing their roof saved them $100 on their home insurance premium, insignificant savings. Keep in mind insurance company would only cover 40% of my roof based on age of roof. By the time deductible gets taken into account, I would be receiving a minuscule amount if I would lose my roof.
I would still carry fire and liability insurance. I need to find a new insurance carrier in the next 3 weeks. I’m still shopping around, but probably new premium amount will over $7k. Insurance premium cost has been going up every year.
Thank you in advance
Statistics: Posted by Iphone5 — Mon Feb 12, 2024 11:43 pm — Replies 1 — Views 129