Should I Keep Paying My Homeowners Insurance?
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- Опубліковано 1 кві 2021
- Should I Keep Paying My Homeowners Insurance?
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Insurance prices in FL skyrocketed. Our house is 2500 Sq feet and this year it is close to 5K to insure it. And then if you do have a valid claim, they will fight you tooth and nail to not pay. Many people pay the houses off and cancel the insurance because it is insanely expensive.
That's the reason my parents never had homeowners insurance they couldn't afford it.
Oh no, 5k a year to insure your what, 200-400k dollar home? My car insurance is 3,600 a year to insure a 2014 Chevy Cruze worth 6-7k and a 2018 GMC Sierra worth 35k.
@@dedalliance1 they wanted to increase from $6k to $8k annually to insure my dads $115k home. He told them to pound sand, paid off the house and started putting that money into a saving account. Now he can replace his $30k roof and pay for any other repairs with the money he kept instead of giving it to insurance. He’s live in his home for 23 years, never filed a claim but paid around $80k over the years for the insurance he never used. Now he does have liability insurance still though in case someone gets injured at his home and wants to sue.
@@dedalliance1 You must be high risk. Yikes.
Got a serious question if you still doing payments on the house do you necessarily have to have home insurance?
The fire station is not there to keep your house from burning down, they are there to keep your neighbors house from burning down too.
What if you lose the house because you can no longer afford the insurance. Florida is experiencing that now.
Yes, tons of NY and CA migrants that couldn't afford Texas after they already moved there in droves in early 2020, migrated to places with similar weather to CA, but cheaper, because their inflation index was higher than Florida's ever was they pushed out the lower to upper middle class segment out of their own state. Home prices TRIPLED because of Californians and New Yorkers. Abolish immigration.
Lol, don't worry about the fire, the water damage to put it out can sometimes be far worse.
Please!!!! The rates in Florida so high you better off being self insured if your house paid off!
😂 “I think your friend is kinda’ dumb”
He wasn't wrong though...LOLOL
Definitely stupid
After paying off my house ...I thought of dropping my home owners insurance. But then I smacked myself in the face and came to my senses.
lol
So you can’t get rid of home insurance if you doing payments
@@1timerodNo, the bank requires it to protect themselves.
@@1timerodLife insurance surely? To pay off the debt if you die. Contents and container is optional.
You dont need home insurance, they never pay up when they are suppose to so put the money you would be paying for home insurance in to a home bank account and let it stack up
its easy for someone with a lot of money to tell someone to buy something expensive they will probably never need.
Insurance companies don’t pay out anymore 😊
A small kitchen fire can take out the entire house with smoke and water damage.
home insurance is a rip off
most of the time
Yes 100%
Our house burned in minutes and we lost everything - never be without insurance!
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50 years old. Paid off house 8 years ago. So, 8 years without insurance. Have never filed a claim or received a cent from insurance company. 34 years of driving and I've never filed a claim. Of course since I was 21, I've only had liability and never had an issue.
Understand this has saved me more than enough to purchase nearly any new car that I want.
Only someone that doesn't understand mathematics, statistics and probability, would call someone an idiot to not consider going insurance free.
Dave isn't an idiot, he's just a douche bag, not illegal!
Smart person, I totally agree with your last statement.
The day she stops paying the insurance, something will happen to the house. It's there for emergencies.
Murphy's law ...
It depends. Each circumstance is different. My dad is in Florida, paid off the house and stopped paying for homeowners insurance. What he did instead of paying $6k to the insurance he puts that money in a bank account every year and has enough money saved now to replace the roof and then some.
Not really
@@xxxxMonkeyGirlxxxx what if it burns?
I get paid to smoke marijuana in my UA-cam videos 😂😂😎🤷♂️
Welcome to the dave ramsey... ramsey show!
Seems like an unnecessary change
@@rm2kmidi agreed
They are definitely attempting to “broaden” the company beyond Dave so that Ramsey solutions survives him as he continues to step back from the company and the show.
@@ozarksjon but if he retires why still call it the ramsey show when he's not there? It be like calling the dave chappele show the dave chappelle when dave chappelle doesn't even do any of the sketches
The feds are trying to lock me up because i get paid to smoke marijuana in my UA-cam videos 😂😂
I don't live in fl and even I know to carry home owners insurance. That's hurricane capital. 😬😬😬
Fema pays for hurricane damages. Have a buddy who got money from his leaky roof damaging his assets and the landlord got paid for a new roof.
What kind of person would ask if they should or should not carry homeowners insurance? Unless you're okay with the place burning to the ground, everyone should always have it. And before someone says their claim was denied, its just like health insurance. You shouldn't use it for small problems, you use it for big problems.
Part of it is because her husband always handled the finances and they did not do it together. When my cousin passed away, my cousins wife almost did the same thing. My cousins sister called me to let me know and I called his wife. Who was also my best friend. I called her right away and she changed her mind.
I think it depends. If you are old , a female and single it’s a must. If you are married with double income, your house is paid for and your husband is a construction contractor and you live in a low risk area then not having home insurance isn’t a big deal …you can be just fine without insurance but like I said it’s not for everyone and it depends on where you live
I’m not a homeowner, how much a month is a typical policy on a home and what kinds of damages would it cover?
Unless you want to buy the whole house again.
No Dave. Orlando means hurricane season. Hello from Tampa. Getting ready for the rain
True story: someone I know dropped the insurance on her paid for house. She was out of town when a pipe burst and flooded the home. Place had to be gutted. Baseboard heat had to be replaced, mold, etc. She couldn't repair it because she didn't have enough money. Penny wise and pound foolish.
whenever out of town for more than a day = close the water main.
it would be wise to do it every time you leave the house, but who does that, maybe i will start
My neighbors house burned down with a fire dept less than five miles away. It was so bad that the goal was to prevent the spread of fire. It was a total loss
On the car insurance thing Dave is right on it but in states where they require even fine you if you don’t have car insurance that would not apply.
I am from Germany, since Dave talked about car insurance. The main reason I have car insurance is not necessarily to cover damage to my own vehicle but to cover the damage my vehicle could cause in case of an accident to others. Which could be millions. Don't know how it is in the US.
Well in the US it’s way more crazy but we manage though .how’s the economic system of the Germany I have always wanted to visit
Everyone has to have liability (unless they want to post a really big bond), which is for the damage you cause to other people. They are talking about coverage for your actual car.
Just increase the deductible from $1k to $5k-$10k if you want to save some money and you're ok with replacing the roof yourself. You have to have it for catastrophic losses though
Completely agree
When millions of Americans can’t afford a $400 emergency the idea of raising the deductible is hard for them to do. Majority of homes in Florida have tile roofs which cost around $30k to replace. There are older homes with shingles of course but tile roof is becoming the norm in Florida now especially if your home is on the coast.
@@xxxxMonkeyGirlxxxx This is a baby step 4-6 issue. Once you are debt free with a fully funded emergency fund raising the deductible won't be difficult.
@@xxxxMonkeyGirlxxxxIt cost $11,000 to replace my roof in Iowa. Insurance covered it, but that was the cost. Florida is asinine - couldn't pay me enough to live there!!
Just how much will a 10k deductible lower your monthly payments?
My friend’s house was less than a block away from fire station and house almost burned down to the ground.
doesn't really matter how close the station is....it's not like they don't respond to other calls ever...
The friend’s advice is crazy!! These two things are almost completely unrelated. Fire station being two blocks away is her mantra... BUT it’s anyone’s guess what can actually happen, how quickly they will be notified or how much water/smoke/structural damage will happen. It’s also not only fire that can cause severe damage. That is just crazy advice to not have the insurance. The house might be paid off but the next one (if damage is massive) is NOT!
House fire in my city the fire department was busy on another call so the first department on scene came from 10 miles away. A lot can burn in the time it took them to get there
Also please don't underinsured your home. For example if its worth 300k and you insure for 200k then the insurance company will say you are only insured for two thirds the value of the claim as you only insured that fraction of the risk. If you had a total loss then you would not get 200k but only two thirds of 200k. Lots of people dont realise this but I worked in this area a while ago and that's how claims get settled. Same for partial losses. You have a fire damage worth 50k then you only get two thirds of that too.
So if you live in your 200k house and it completely burns down (worst case scenario), they only give you 132k... if you're paying 8k per year in insurance then in 16.5 years you've lost your money. Insurance is a total scam.
@@MRMIKE276a big scam and why forcing us to pay anyways
She needs new friends. Plus she lives in FL with all that bad weather. Keep the insurance and kick your friend to the curb.
You’re in Florida! Mold, water and sink holes are a bigger threat than your house burning down. Keep that insurance primed!
Most insurance doesn't cover mold or sinkholes
Mine does, you have to ask for it. Not for sink hole because at that point cutting and leaving is cheaper, but water and mold damage can break you.
Lol what a friend. Why bother having car insurance too.
Yes. This didn’t age well, Florida insurance just sky rocketed, some tripled. People are not able to afford these insurances
Is it legal for them to do that to the local population that has been there since they were born seems kinda bullying the people out of home and birth place (natives are probably laughing )
For those who don’t know homeowners insurance in Florida is not cheap. It is very expensive here and costs the majority of homeowners a couple of thousand a year. To top it off insurance companies love to fight to not cover the damage so it can take years sometimes to get things fixed. My dad lives in Florida and his homeowners insurance went from $6k to $8k a year so he paid off his house and put $6k every year into a bank account. Now he has enough money to replace the roof and do other repairs on the house. Depending on this lady’s prior claims history and dollar amount she is paying yearly it may have been better to cancel the insurance and put that money into a savings account so she can pay for any potential issues in the future herself.
My car insurance is $3,600 a year lol. My car is paid off and my truck is fairly close to being paid off. But unfortunately paying for the insurance is cheaper than getting sued for half a million in medical expenses which is pretty easy to rack up in the US.
@@dedalliance1 with a house that type of situation home is called personal liability insurance and is separate from homeowners insurance (which is wind, water, fire damage) in Florida. Most home insurance companies do package deals for them together but you can get personal liability insurance separate from homeowners insurance in case someone had an accident on your property and wanted to sue you. My dad does have liability insurance on the house in case someone gets injured and wants to sue and he pays around $800 annually for that.
You seem to be the only one making sense in the comments. Most property insurance is a scam. Put money in an account every year for emergencies and you should be fine.
It the whole scheme of things, house insurance is cheap. Don’t think about just replacement value. Injuries and lawsuits protection are a must
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I still carry full coverage on my 93 truck because it's cheaper than writing a check out of my account
Which is the best company to SELL for? Best commissions/training etc (I’m in south florida)
Has anyone had experience with Kin Insurance living in central Florida? Are they reputable?
I don't have property insurance for the past four years.
Some homes the land is worth more money then the house. The land and the house together is what make the value of the house. A total devastation is hard to do any damage to the land.
Even if the fire department is two blocks away, what are you going to do if they can’t respond as quick as you’d think? They may be further away at the moment. They aren’t always just at the station either.
That’s not a good friend.
Also there’s possible water damage,mold,and smoke damage as well.
Can't forget about the liability provided on your homeowners policy. You lose that if you cancel your policy as well.
Homeowners insurance is cheap if you break it down annually.
you play stupid games, you get stupid prizes
Dave is crazy for having full coverage on vehicles!
Na, I still carry full coverage on my cars. My rate is so cheap, I only pay like $400 a year difference between full coverage and liability only. Thats covering $20k worth of cars.
Nice work 🎇🎆🌠
So interesting
2023 these next years to storms and all these fires here Arizona very hot here…. And the weather so hot 🥵 the grass hay it gets hot
FINANCIAL RISK is everywhere! Protect yourself out there!
Lord have mercy, the questions people ask.
Also, you can't lower the replacement cost. If you underinsure a building there can be a coinsurance penalty that reduces what's paid for any claim.
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My residence was built to be a telephone switching station. It was built to contain an explosion. 16 inch thick brick walls, poured concrete roof, poured concrete floors. I have 10,000 dollars invested in purchase and repairs. What can happen to it and how much is my loss??? I self insure.
Paid my house off after five years. Canceled insurance. Lived in it for 20 years and sold it for great profit. No other homes in my neighborhood burnt down. I saved forty k on insurance over the years.
Where do you live? That some expensive insurance.
That's good for you but definitely not the norm
Liza from Hurricane Country wants to know if she should carry homeowners insurance 😂
What can happen??? Anything lady!
Insurance in the south has gotten so Fn high that if you don’t have a forrest for a yard and you live on a hill you’re probably better off without it.. haz insurance just more than doubled on me.
Funny. Just shop around for admitted carriers to lower your premium.
Consider removing off premises theft, lower personal property to actual cash value, jack the deductibles to the max.
Winter Storm URI- Hello from Texas
What’s the best type of homeowners insurance is there to have ?
Go with a higher deductible if you want to save money. I have a second vehicle (farm truck) with just liability. It's not worth the cost of the monthly premiums. Went with a 1k deductible for the other vehicle. Saved a bunch on the premium. Well worth doing if you can financially do so and afford to let the deductible money sit.
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Thats what I did, 1k deductible. I can eat $1k much easier than 10k.
@@mph5896 word of advice friend!
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Can a person lower their coverage for certain things? For example, if my personal property coverage is say, 645k but I only have around 50k worth of personal property, can I get my coverage lowered to 50K? If you can, then this would be a really good way to lower your monthly bill. I'm noticing my liability is too high as well. They have it at 300k. Would like to lower that to 100k. People should check their policies and see just how much coverage they are paying for, and possibly get it reduced or removed. There's no reason I should be forced to pay for personal property inside my home that I don't have. 645k is insane!
I am so surprised to see so many people paying cash to the insurance company in return for nothing, why can we get a bond and self insurance for our houses
This is just corruption at its finest, ten years of paying for insurance it’s a bond price for sure
A happy middle place here might be to have your deductible raised that you carry on your insurance plan. This will lower your monthly payment for the home owners insurance and still give you the same replacement coverage and liability, but you know you aren’t going to use the insurance unless you need it for something serious that happens with the house.
Murphy’s law says that as soon as you do that a tree will fall on your house.
That's what I do my home is paid off, I still have insurance but my deductible is is high, but because have no mortgage I was able to save enough to cover the high deductible
@@datnohi8612 Just how much does that decrease your monthly payments? A little or a lot?
@cannotbeshaken7889 my principal was 3k with a regular deductible, I went to a 10k deductible came down to 1000
@@datnohi8612 That is great, I'm so happy for you. I agree that you made the right decision. I'm wondering how much a 10k deductible will drop a 9K premium. And here is something else very interesting. When I look at my insurance it has me covered for 645k worth for personal property. I don't have nearly that much personal property! I'd rather be insured for maybe 50K or even none! You would think this would drop someone's insurance significantly as well. But I don't know if the insurance company would let you. So far I've heard one person say their insurance company wouldn't let them drop below a certain amount. They also have my Liability way too high as well. Would love to drop that one lower too, and they have 87K for other structure, which we don't even have. So, just saying, people might want to check theirs too, and possibly get this stuff lowered, or removed.
It’s a must
Why is it not the dave Ramsey show any more ?
You live in Orlando I’d keep it!
Having an equity flex agreement is not a loan unless you actually drawn from it. It’s a way expand your money use liquidity. Yes it has limits. As long as your financial discipline remains intact.
What happens if homeowners insurance is 6k for a 400k home?
HO Policies offer way more coverage than just the home.
A Good Quote, Count your blessings not your problems.
I'd maybe raise the deductable. But defiantly keep the insurance.
Agreed
how do you start a business without debt?
She can change her deductible 1000 to 5000 and ins will be 1/2 priced
It seems to me that insurance agencies wouldn't be in business if the cost didn't outweigh the risk. What are the chances of your house burning down?
Man, some people are stupid! The whole point of insurance is to protect yourself from low-probability, high-consequence events. And to even think about dropping home insurance in Florida? Ever heard of hurricanes? Sink holes?
A real friend wouldn't tell you to cancel your homeowners insurance.
Have a small fire but fire department gonna flood the house
But how many people don't have health insurance. I have very little. I'm 59 and my homeowner's insurance has skyrocketed to $2500 a year, or over $200 a month. I just paid off my house and I'm trying hard to put cash back in the bank but the insurance company wants their money next month. I just hate to save up the money just to take it back out. I could use that money for rewiring the house. My house was also built in 1959. $2500 would help a lot and in two years it would be $5000, and three years $7,500. I can look into raising the deductible though. Anything to drop the cost of the insurance which was raised by some 90% in ONE YEAR here in Florida.
Same in Louisiana
This is mind-numbingly stupid. Stop taking financial advice from a know it all 'friend' or 'brother in law' or whatever..
Anthony O’Neil reacts at times are hilarious because you know he’s thinking “seriously” people
People can't be that stupid.
You just had a year of watching how stupid and gullible people can be. Nothing surprises me any more .
There is no such thing as full coverage. That’s why you purchase an umbrella policy to pick up where the auto / home owners insurance maxes out. C’mon Dave you know better!
On a roof would you rather pay a 5k deductible or 20k to contractor?
I don't understand Dave having insurance but not liking extended warranties. Isn't it the same. He is most likely to pay more in premiums and deductibles than the insurance will ever pay out. I do understand that most people should have insurance because they couldn't replace it and obviously liability is essential.
Speaking of insurance, how about adult children buying a life insurance policy on parents who don’t listen on advice of starting a funeral fund so not to burden the children with unexpected costs? I live on a fixed income and disabled. I already have $ saved up in case of emergency. I wouldn’t want to burden anyone. I try to explain it to them but I just can’t seem to get through. Any advice?
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You want your adult children to pay for your life insurance policy? Is that correct?
Funerals are like weddings, they are only as expensive as you want them to be. When my dad passed away, mom would have spent 30k more than needed if i did not step in.
Simple rule for insurance. If the damage costs you a fortune, then it's worth to get a insurance.
Sure a broken cellphone is unpleasant, but absolutely not worth to have a insurance for that. A burned down house? Were you gonna live?
right now i have my house insured BUT if they charge us anymore here in florida i may not have any choice but to dump it!
Get with a insurance company that shops to get you a better price. They do all the work for you and let you know what they have found. Look into it. Good luck.
@@ricknelson4793 I have already gone that route ! here in florida we dont have many to chose from and so you can do it yourself like i did!
I wonder if you can get insurance from a state next door to Florida and get a better premium but I don't know if that is possible. I'm a thinker though lol
@@ricknelson4793 "all" insurance companies know to stay away from florida.
the best insurance in florida is = stormproof your house.
That friend isn't very bright lol she probably meant well, but 😂
Hi Everyone, I am a licensed Insurance agent and if anyone has any questions please feel free to reach out regarding any insurance needs. Great video as always Mr. Ramsey and keep up the great work!
Hello, why would my home owners insurance go up $800 a month. I'm in central Texas
And I would like to know why I have to pay 645k for personal property coverage when my personal property is only worth 50K ?
Why’d you change your show name?
It's smart to have home insurance even when the house is paid off but that doesn't mean you have to have all the coverage your lender once required.
Humm... guess I need to start shopping for house insurance!!!!
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If you pay off your car, do you get rid of car insurance? That’s the logic that this friend is basically saying. Yes I know it’s different and car insurance is required by law but still, you never know what could happen with your house.
If you pay off your car you absolutely get rid of comprehensive, the insurance that covers the tree falling on it while not driving. Auto insurance to cover accidents is an entirely different thing.
I’d drop it in a heartbeat. Home owners insurance is indeed a scam. Even if you were to have a fire you still have to pay a deductible which you may or may not have the money for. Not to mention. It doesn’t cover the more important things in life like pictures and things a person made who is dead now. At that point in time I’d much rather not have it than have it.
Almost everyone including Dave is like, well obviously keep insurance, so I'll play devil's advocate. Dave says he can cover the full value of his assets with his own money and that on average insurance companies are coming out ahead on him. So where exactly (statistically or mathematically) does he derive the value he says he gets from insurance?
Ned doesn't believe in insurance; he considers it a form of gambling.
Home insurance also pays for people hurting themselves on your property.
That's liability, and can be purchased separate for very cheap
Maam your friend is not smart🤣🤣🤣
I bought my house on the 100% Dave plan as in for cash. First thing I did when I had the offer accepted was get insurance arranged. Six weeks after we closed we got a hailstorm that wrecked almost every roof in Cheyenne WY. Even with the $1K deductible I got the equivalent of 4-5 years premium back right out of the gate. Also I don't drive anything that I can't replace for cash out of my safe so I just have compulsory third party liability insurance..
Figure paying insurance for 30+ years and you lost money.