"Going bare" aka dropping property insurance - so many questions about this ... (Arcadia: attorney, houses)

[MortonR]

Originally Posted by WRM20

You can't get an umbrella policy without having an underlying liability policy on the house or vehicle.

Wrong. I've had a personal liability umbrella policy that is "stand alone" for 30 years. It does augment my car insurance, making it cost lower, but has no connection with my homeowners insurance whatsoever.

I bought it when I was a private business owner to protect against personal liability.

RM

[WRM20]

Originally Posted by MortonR

Wrong. I've had a personal liability umbrella policy that is "stand alone" for 30 years. It does augment my car insurance, making it cost lower, but has no connection with my homeowners insurance whatsoever.

I bought it when I was a private business owner to protect against personal liability.

RM

That means if someone is hurt in your home, like slipping on a banana peel you didn't pick up, your umbrella policy will not provide any additional coverage.

[Mikala43]

While not FL, when a fire tore through our area, a lot of people in some areas were "bare", those houses have not been rebuilt. Many are living in trailers on their lots.

[kyle19125]

Originally Posted by hardluk1

Have you consider trying to sell and move to an lower cost to insure and live area , Even to a different state . We did not move do to cost to live in florida but we did move to WNC years ago and find cost to live here today is still far less than when we moved away from SW FL years ago .

Unfortunately you're largely preaching to a group with tax allergies who also place a big premium on 10 months of hot weather and little appreciation for anything "in between".

[LKJ1988]

Originally Posted by Mikala43

While not FL, when a fire tore through our area, a lot of people in some areas were "bare", those houses have not been rebuilt. Many are living in trailers on their lots.

We had a drug dealer cooking drugs in a house in my hood and it burned down. It's been a empty lot for over 10 years and no one will buy it since the house has to be built 10ft high per hurricane rules since i am right on the gulf.

[JoeJunior]

My close friend lives 200 yards off the Gulf in Ft. Myers. He ended up with 5' of water in his house and it wiped out all of his priceless English antiques from the 1700's.

The state and the country zoning authorities have about run homeowners crazy. They won't allow anyone but insured, bonded full line contractors to do any repairs even if it's as minor as putting up a little trim around a door or hang a small gutter.

My friend had a house mover lift his house 15' and build a story under the house that's expendable.

He got so tired of dealing with the house, damages and contractors that he took off for a 5 month around the world cruise.

[beach43ofus]

Originally Posted by MortonR

True, but many forms of litigation, especially personal injury, are not shielded by bankruptcy laws in Florida. In other words, if you’re sued for personal injury here, declaring bankruptcy doesn’t get you off the hook.

One alternative is an “umbrella” policy. They’re relatively inexpensive, maybe $60/month for $1M coverage, and can shield you from most litigation or awards. That’s not to say someone wouldn’t go after your personal assets as well, but in most cases the search is for the deepest pockets and usually ends there.

RM

We had a $10M umbrella policy for 7 yrs...just dropped it when our Son legally left our nest (there's a lot to what constitutes legally), and we filed taxes for the 1st time w/o him as our dependent.

The underwriter of the umbrella policy forces you to have certain limits of liability insurance on your cars, homes, & toys, & its not just basic state laws of liability...it was $1M for our cars, but I dont recall the home liability limit they required...I think it was $100k.

So, umbrella policies are not a solution to the OP's query.

We ditched our flood insurance recently because we're 8 miles inland on an "X" elevation lot, not near tidal waters. During Ian, our streets were underwater, but no homes. Ian was Cat 4, so we're willing to take the risk on having no flood coverage moving forward.

I'm going to look into ditching our homeowners too...except liability; if that's even possible. I don't think homeowners insurance companies will write liability only, but I could be wrong. I'll post again after I find out.

We're had the highest deductible available for 20+ yrs., & kept our insurance costs down by; shopping annually, having 800+ credit score, paying 1 year in full in advance, living in a low-risk area, in a newer low-risk home, cinder block, hip roof, flat tile roof, all rated at 160 mph.

We have ample assets to cover a total loss, or we wouldn't be thinking of going bare. If we had a total loss, we'd sell the land, & live elsewhere.

Most people who go bare are wealthy enough that a total loss would not crush them financially. Most have several residences. Others are elderly, are fixed-income homeowners, but have little else, and must reduce their monthly burn to get by.

[hardluk1]

Originally Posted by Marguerite2015

Hi - I don't actually live in Florida at present. I presently live up in the frozen north and my homeowner's insurance and taxes are fairly cheap here.

WNC I assume is western North Carolina? Did you leave SW FL because of hurricanes, I wonder?

No hurricanes did not really bother us but the tornados that could show up did But it was home . Hurricane donna water the edge of the property and that was it . My wife and I when we were married built in golden gate estate and sat on the front porch there a few good blows over 20 years before we decided to sell out
to raise our two girls in a far better , safer location in Yancey County NC were we vacationed over some years .
Been here for 25 years now .

[Dave_n_Tenn]

Sometimes forming a LLC can fit the bill.

[Marguerite2015]

Originally Posted by Mikala43

While not FL, when a fire tore through our area, a lot of people in some areas were "bare", those houses have not been rebuilt. Many are living in trailers on their lots.

Acadia - 35 miles from the coast - was directly in Ian's path and got badly flooded. Not a rich town. Many went bare due to inability to afford insurance. Same thing - they are living either in the remnants of their home or in a trailer on the property with no funds to fix the house nor to move.