U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-30-2017, 02:02 PM
 
Location: Mount Airy, Maryland
10,459 posts, read 5,922,719 times
Reputation: 16151

Advertisements

Quote:
Originally Posted by keysdreaming View Post
I may have missed it but nobody who actually lives in SoFla and understands what 'homeowner's insurance' means has responded, so I will. I'm a long time Miami resident who has no mortgage. What your accountant is probably telling you is to drop your WINDSTORM coverage which is a separate expense from, although included in, your homeowner's insurance quote.

One can certainly purchase homeowner's insurance that covers liability, fire, theft etc and can add an umbrella rider. On my home that costs ~$1000/year.

Windstorm coverage however is a whole separate charge and this is what everyone is talking about with high premiums, little choice, and very high deductibles.

I dropped my windstorm when the premiums rose to $7000 annually and I would have also faced a deductible of about $25,000 before insurance coverage kicked in. Because I have no mortgage I self-insure for windstorm damage, ie I have enough saved that if my house needed a new roof etc I could pay it myself. Frankly it didn't take too many years of saving that 7K to get us to a good place financially to do so.

Last but not least, people may not understand what property values are like in SoFla. In my neighborhood a bare lot is worth $250-$300K. So in the worst case scenario I could either sell my demolished home on a valuable lot or I could use my savings to put on a new roof.

Life's a lot different in South Florida and the accountant is providing some pretty solid advice for this area--which does not apply to most anywhere else.
I really like this post and I'm thinking the opening poster has both homeowners and windstorm coverage. While those of us not living in hurricane land understand the risks in Florida are much greater $4,000-$7,000 a year sounds crazy to me. Ours in central Maryland is under a grand.

But for the life of me I can not understand the advice to drop it altogether. Not only does it cover the house in case of fire etc but the contents as well. Once you add up the cost of furniture, clothes etc you will be up to huge money before even considering the cost of a new place to live. I mean just add up in your head the cost to replace all of your clothes, right down to your socks and underwear. It makes zero sense to have protect all you have.
Reply With Quote Quick reply to this message

 
Old 03-31-2017, 12:26 AM
 
5,619 posts, read 8,548,332 times
Reputation: 7705
Quote:
Originally Posted by keysdreaming View Post
I may have missed it but nobody who actually lives in SoFla and understands what 'homeowner's insurance' means has responded, so I will. I'm a long time Miami resident who has no mortgage. What your accountant is probably telling you is to drop your WINDSTORM coverage which is a separate expense from, although included in, your homeowner's insurance quote.

One can certainly purchase homeowner's insurance that covers liability, fire, theft etc and can add an umbrella rider. On my home that costs ~$1000/year.

Windstorm coverage however is a whole separate charge and this is what everyone is talking about with high premiums, little choice, and very high deductibles.

I dropped my windstorm when the premiums rose to $7000 annually and I would have also faced a deductible of about $25,000 before insurance coverage kicked in. Because I have no mortgage I self-insure for windstorm damage, ie I have enough saved that if my house needed a new roof etc I could pay it myself. Frankly it didn't take too many years of saving that 7K to get us to a good place financially to do so.

Last but not least, people may not understand what property values are like in SoFla. In my neighborhood a bare lot is worth $250-$300K. So in the worst case scenario I could either sell my demolished home on a valuable lot or I could use my savings to put on a new roof.

Life's a lot different in South Florida and the accountant is providing some pretty solid advice for this area--which does not apply to most anywhere else.


As a former flood insurance adjuster I must say that I suspect this is EXACTLY the case.

Excluding roof repair or replacement (keys did an excellent job of explaining the viability of self insuring) most hurricane dammage is coveted under "flood" not "wind"



I will admit that I've toyed with the idea of (in 5-8 years when I build my "forever home" for cash and my current home (also built for cash on the same property) becomes shop and guest quarters NOT getting homeowners insurance on the new structure.

....but I intend on building it out of rock and concrete (ICF construction) into the side of the hill, with a roof a tornado could dance on and not dammage, with added fire breaks, (have dozed fire roads now) etc and roll down security window coverings.
Even if an internal fire happened.... with marble/concrete floors etc.... replacing the interior would probably run me under $50k. Probably won't, and
NOT something I'd ever CONSIDER for a traditional home however.

And in the unlikely event Key isn't right...
I'd NEVER go without liability coverage.

Insurance is a guaranteed loss in order to mitigate the risk of a larger loss.

$7k/year savings vs (Insert depreciated payment on a roof replacement here) I could see.

Risk from no homeowners.... unreasonable.
Reply With Quote Quick reply to this message
Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top