Homeowners ditching home insurance over rising premiums

UBS’ Angeline Newman and American Property’s Karen Collins join 'The Exchange' to discuss homeowners passing on home insurance. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
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[@NicholasBall130]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[@StacieBMui]

Consider buying stocks when the economy is not doing well, like during a recession. It could be a chance to buy them at a lower price and sell later when prices go up. Just keep in mind, this isn't financial advice, but sometimes it's better than keeping a lot of cash.

[@DilaraKamelya]

Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.

[@EleanorBaker474]

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.

[@DilaraKamelya]

Sonya lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@VictorBiggerstaff]

I just checked her out on google and I have sent her an email. I hope she gets back to me soon.

[@PatyRamírez-z9z]

The biggest lesson I learned in 2023 about the stock market is that nobody knows what will happen next, so practice some humility and low a strategy with a long-term edge.

[@JuneTalley]

Nobody knows anything; You need to create your process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.

[@amolejoshua7452]

@@JuneTalley True, initially I wasn't quite impressed with my gains, as opposed to my previous performances, I was doing so badly, that I figured I needed to diversify into better assets, I touched base with a portfolio advisor, and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.

[@PatyRamírez-z9z]

@@amolejoshua7452 Could you kindly elaborate on the advisor's background and qualifications?

[@amolejoshua7452]

@@PatyRamírez-z9z “Victoria Carmen Santaella’’ is the licensed fiduciary I use. Just research the name. You’ll find the necessary details to work with a correspondence to set up an appointment.

[@PatyRamírez-z9z]

@@amolejoshua7452 I just ran an online search on her name and came across her website; pretty well educated. thank you for sharing.

[@captmrgn7040]

My insurance went up 42% this year and 30% last year. INSANE!

[@yellowbird5411]

Yep. Me too. I have one rental and my primary residence. If I keep both insurances (both houses are paid off) it will cost me over $400 per month. My insurances just sent me warning notices that my insurance is expiring. But I would rather take that money each month and put it into an account. I have extra money, too, in savings. If my roof blew off, I could replace it. Self-insuring is scary stuff, but so is paying this amount of money in insurance. I've never had a claim in 35 years. The lots both houses sit on are very valuable, in a very desirable beach location. If both houses blew away, I could build another house easily with the proceeds from the lots.

[@Ric_-_770]

I agree. My new quote is crazy ! What’s going on

[@straightshooter4353]

@@yellowbird5411you own 2 properties and still complaining about $400 home insurance a month.

[@yellowbird5411]

@@straightshooter4353 That would be correct. Probably comes to a bit more than that, as it's going up again soon.

[@john_mccarthy_hi]

I thought you heard there was no inflation?

[@Faith_Hope_Live]

Well, if it's a choice between buying food, paying utilities, having health insurance, I place homeowner's insurance as LAST.

[@taobot8]

Isn't home insurance a condition of your mortgage terms? Unless you own your home outright, I don't think you've got a choice here.

[@GardeningGems]

@@taobot8Right, I was under the impression that’s how you get a lean placed...

[@InsiderBoy]

My issue is them going to ask for free government money funded by us taxpayers who don't own homes when they lose their house. Complete selfishness.

[@JoyTothesummer]

​@@taobot8 jokes on you. I own my home, no mortgage 😂

[@taobot8]

@@JoyTothesummer how is the joke on me? I also own my home. Actually, I own 2 and I'm building our third. My point is that most people aren't in that position and most people have the majority of their wealth as equity in their mortgaged property.

[@jonlj77]

CANCEL. Self insure. If you have 20% paid on your mortgage you can handle your( escrow ) taxes and insurance on your own. At that point just cancel your insurance. Punish the industry, and fight back. They don’t have your best interest at heart. The coverages and deductibles are getting worse and worse.

[@yellowbird5411]

I am. Houses (2) paid off. Will put that $400 a month aside for my own coverage.

[@TheMangoman72]

Well said..the moment the people come together the moment sh@t changes..

[@matt7iron]

​@@yellowbird5411save that money for a roof or some other damage

[@mclaine33]

You legally cannot abandon any home insurance unless you own the home and have no mortgage. There’s no such thing anymore of having a mortgage without insurance.

[@hokeywolf3416]

Right, I don't have a mortgage.

[@wadexyz]

They list the requirements at 2:02 of the video.

[@jonlj77]

Incorrect. If you have 20% paid on your mortgage you can handle your( escrow ) taxes and insurance on your own. At that point just cancel your insurance. Punish the industry, and fight back. They don’t have your best interest at heart. The coverages and deductibles are getting worse and worse.

[@yellowbird5411]

@@jonlj77 My deductible is so high that unless a tornado tore my roof off, it wouldn't help much. And there is a lot that insurance simply doesn't cover, too. My friend's insurance this last few months jumped from $8,000 a year to $1,800 a year. She was beside herself. She called them and wrangled them down to $12,000. But then she decided to sell the home and buy a smaller one. So she at least now has the choice of whether to have insurance or not, as the new house is paid off. I have another friend who is low income, and his house is paid off. He dropped his insurance awhile back. We are being squeezed so hard.

[@paraax]

​@@jonlj77just because you are allowed to handle it outside of escrow, doesn't mean that the haven't agreed to maintain insurance as part of the conditions of the mortgage. As was mentioned at the end of the video, once the mortgage issuer determines your property is uninsured they will pull their own insurance on it and pass the cost on to you.

[@l.rod2827]

I realize insurance companies have been paying out a lot of claims due to so many weather related disasters. However my insurance both homeowner and vehicles have been skyrocketing to the point that I can barely afford it. Not sure what the answer is, but certainly continuing to raise premiums will ultimately price themselves out of business and that will certainly collapse the economy.

[@archangele1]

I am finding that in North Florida a lot of people just plain do not have the money for insurance anymore and we are seeing an increasing number of people driving vehicles uninsured. That as well as forgoing home owner's insurance if they happen to own a home. When you make like $35K a year, having to come up with over $4K a year in house and car insurance is just not financially feasible if you plan to also eat and keep a roof over your head and the power turned on. I mean, after taxes your bringing home like $2500 a month. Pulling almost $350 a month out of that just for insurance is just not possible given the cots of everything these days. I mean, even an old car will cost you over $.50 a mile to drive when you factor in just it's cost, maintenance, fuel and repairs. I mean, every time some light flashes on the dash it's $1000 or more these days. A set of tires on something like an Infiniti Q60S is over $1,000. A bloody battery is like $230 now. The cost of everything has gone up so fast over the past three years that unless you can sleep in it, eat it, drive it or drink it, it is going to be put on the financial back burner list of things you'll never have the money for.

[@nozztheking8138]

Ask czu and paradise ca home owners if they have been paid out.

[@ericparker163]

I know when a hail storm hits here in Texas, out come the roofers, knocking on doors and talking about potential damages...and best of all your insurance will pay for it.........for every action there is a consequence.

[@MyBizOnlu]

They need to pull out of coastal areas as high claim areas. Why should the rest of the USA share that debt. Make them go thru FEMA like river homes

[@larryhradek3298]

Insurance is a scam.

[@chillwill5080]

So is getting a new roof based on fraud but no one's complaining about hundreds of thousands of "roofing companies" knocking on every door offering free everything and to file claims for homeowners. Nothing has changed about greed, it will be your downfall.

[@larryhradek3298]

Land taxes are theft

[@diamond6256]

AND Property tax after your home is paid off and over 65 Retired with low income.

[@Bob-bb3ur]

It worked for Al Capone

[@karmasutra4774]

I paid cash for my home and I am going to not renew my insurance at the next renewal. It is getting ridiculous and I can just self Insure at this point

[@truthseeker6610]

How do you self insure? You either have insurance or don't have it~~~

[@MechE11B]

You self insure by having a high amount of liquid or invested cash that is roughly equal to what it would cost to replace the home should something happen. It's mostly reserved for rich people.

[@wadexyz]

@@MechE11B i wouldn't call that insurance

[@yellowbird5411]

@@wadexyz It depends. If you put the insurance money in a separate account, over a short amount of time it is a sizeable amount, and most repairs or roof replacements are covered should the need arise. If the entire house blows away, the land can be sold or with what you have in savings, you can build a smaller home or buy a smaller one with the proceeds. Many deductibles are so high, that most damage isn't covered anyway, unless you keep a low deductible and pay higher premiums.

[@chillwill5080]

With what government takes in property taxes, I feel like they should provide insurance on their assets.

[@wd8085]

I got rid of mine and invested it and now have a lot more to fix whatever issue may arise and still will money leftover. Smartest move i ever made.

[@MH_6160]

Honestly this is a pay to play situation.. Maybe push the rate hikes on people based on individual risk, not overall risk.. people who want to live on the coast and areas prone to fires or other natural disaster pay a surcharge. Why am I paying for people who chose to live in risky areas?

[@ericparker163]

I work in insurance and I'll say this, people tend to think it's not disproportionately spread according to risk but it is, it's a sliding scale though, and the cost is going up for everyone, everywhere.

[@charles1606]

Let these insurance companies price themselves out of business. DON'T BUY THEIR PRODUCT!

[@defendingthefaith.7889]

If one is paying their bill. Insurance companies shouldn’t be able to drop those clients. Unless they are giving that money back. Insurance companies are stealing clients money.

[@laraantipova389]

They do it as a vote of no confidence. They think the people are problem clients, and they don’t want them anymore

[@wrenchinnerd8173]

my insurance has gone up 300% in the past 5 years. Forced to have it because mortgage. I am looking to get the bare minimum insurance but the policies and information is hidden. The levels of coverages are forcibly set by the insurance coverage.

[@john_mccarthy_hi]

wonder what the common denominator is?

[@user-ft4dg3hs8s]

If one has a mortgage, isn’t insurance required by the mortgage company?

[@scratchyguitar6404]

Yes. Disregard the misleading comments.

[@johndoe-wv3nu]

My insurance is due for renewal in October. It's reported to increase 42%. If that happens i will not re new.

[@MrMountain707]

Scary Times

[@diamond6256]

I have to admit, I have thought about doing this. I just don't like the fact that insurance can and do insure what you don't need and cannot change. My insurance is $4,000 and Property tax $4,500. WHY pay these after 65 and low income with home is paid off. Where does it stop? Getting where we can't afford to maintain the house and running us out of our homes we spent 50 years to Retire. They are insuring my $1,000 for $19,000 and I don't have a choice. Why do we have to fight every year to keep tax and insurance low when we have no issues.

[@westentrance]

After diligently paying home insurance premiums, my experience with one small claim with The Hartford has been a near journey thru hell. Beware.

[@wadexyz]

oh yeah, they're pure evil

[@toupoutou2175]

Texas coast here, got un renewed, premium rising between 5-7k with poor surplus line policies... how to get a liability insurance without HO insurance? Can I rent my home to myself at will? Where can I split the liability risks and buy it from somewhere else?

[@Chano601]

There is basically less homeowners issues in Az and they are going up double. Break them up. They are monopolies. Blackrock raising rates.

[@dkh4487]

If homes aren't insured then I question the actual home valuation? Try driving a brand new Ferrari and not insured.

[@user-wp3pc9ky4l]

What is the cheapest pmi?

[@l.d.8310]

Hi does anybody have information on insurance companies for Grass Valley area?

[@davidcarp5935]

Insurance is a money pit till you need it, then it still sucks cause they never want to pay out or pay the right amount to fix home or car damage or settle liability.

[@USA-GreedyMenOfNoIntegrity]

Try 29% increase this year over last year in Kentucky. Now at $1800! Your $1400 avg for $250k is way off! In my little hole in the wall hypocrite community, I haven’t seen any average income people in the insurance, banking, real estate, medical, power distribution businesses.

[@AKAAAK]

Ditched mine 10 yrs ago. House has been standing strong since the 40's. So if SoCal has a significant earthquake, enough to knock a house off its foundation, then we have a bigger issue than just getting our homes rebuilt. But in a few years, i wont be needing to worry about that much longer anyhow.

[@rkgsd]

Idiotic move considering if the home is severely damaged or destroyed, you'll get no rebuilt house. You have forfeited the value of the home.

[@genx7006]

It's a gamble. It is highly likely that your insurance will deny your claim altogether or give you a tiny payout once you pay your ridiculous out of pocket deductible. Over the past 20+ years owning a home, insurance has only covered about 15% of my claims, and typically in a small, begrudging way. I wish I would have forgone all that insurance and invested that money instead. I would be very wealthy now.

[@wmpopper]

Gasoline Tax Nationwide at 2 cents per gallon at the pump to offset hydrocarbon emissions linked to Global Warming Data to be paid to each states insurance homeowners policies tax fund, to help mitigate the increasing financial insurance payments due to the burning of fossil fuels pollution/climate degradation. The Oil Corporations and vehicle drivers are ultimately responsible, yet the homeowners are burdened with the increasing financial climatic liabilities, why?

[@heroknaderi]

This is crazy

[@bbokc6942]

Well in Oklahoma premiums are rediculous. We are considered the most expensive state anymore mostly do to hail. Premiums on a 300k house can run 5k and have a 30k roof deductible. Unless you pay more and buy buy down insurance It’s even worse if you are a condo dweller. The master policy for our condo group of 22 homes was 6k in 1996-now is 52k with insurance that covers less than before. A ten time increase in less than 30 years Since 1996 our

[@cashrules520]

That's insane

[@cashrules520]

I had liberty mutal pass 3yrs. Started off at 1k, they jumped 40% to about 1450, then 1687, and my renewal for 2024 I got fed up. They sent me a $1970 policy, I chopped it down to $1521, and just got a qoute from Farmers bureau for $1304... then I chopped that down to $1,141

[@robertskelton2576]

Farmers just pulled out of Florida.

[@bryangriffin3139]

Yeah, I live in California insurance dropped us twice due to fires which I am nowhere near the fire area is but whatever my problem is my broker signed me up for a policy. I didn’t sign cause I went on and got AAA and now I’m finding out I have two policies and they want 3000 more dollars. What the hell is going on? Why did they sign up that Without my permission it’s just ridiculous so now I gotta call the mortgage company and show them all the stuff I have signed stating it canceled by the broker six months ago cause I cover my back I got it in writing and dates of service dates of cancellation, but they still signed me up crooked brokers

[@larryhradek3298]

Have to pay land taxes or it doesn't do any good to have insurance. They will take your house and land. What a scam!!!!!

[@chillwill5080]

Seems to me that government should have to provide insurance to protect the assets that pay for them to exist, which is your property and the tax money it generates.

[@cashrules520]

This is going to lead to a property taxes/insurance crises where folks walk away from homes in the next 8yrs. And the downfall of the USA Economy. Which will be worse than the 07/08 Mortgage crash

[@mumbles215]

“ In the future, you will own nothing and be happy” -Charles Schwab

[@MilysJourney]

I live in South Florida, our average is 5k to 6k or more .

[@lillithjones993]

My insurance with no history of claims went up $800 😡

[@fartexplosion4480]

Florida is the number one state of home insurance importance because of how vulnerable it is to hurricanes

[@philipchabot6064]

We ditched it to many loop holes dump it if you can.

[@vinny1381]

4000.00 for policy ; forced to pick up flood wether your in flood zone or not for 3000.00 to 4000.00 = 7000.00. Add to that your 7000.00 low deductible and you have to have 14001.00 in damages before you get to claim the first 1.00 in damages. You do the math?. I'd rather spend 70,000.00 for windows; doors etc.. to fortify my house so theres no damage and I'M SAFE.

[@taobot8]

Better doors and windows? Let me know how that strategy plays out after a 10ft storm surge, wildfire, or flash flood.

[@Tony.the.Baptist]

I live in California and my homeowner's insurance was just cancelled because insurers are jumping ship and leaving California and the ones that are staying or not writing new policies.

[@veev2561]

That should tell you. You may want to sell,leave ca too.thats the way its going.there will be many forclosures in ca,never heard of since long ago,but already happening. When insurance cancels,mortgage co can forclose.its a simple land grab by international investors in the uk, ccp china and elsewhere. There are already antitrust lawsuits against the insurance industry,as it's about more than wildfires,floods,hurricanes. Un, blackrock are involved,they own , are major investors of home, vehicle insurance.its like illegal,unlawful civil forfiture done in a massive coverup method

[@wadexyz]

Waiting for the guy who wants the "market" to determine everything.

[@davidcarp5935]

I never understood ocean or beach front property. Its just water, so so view and 10x more than the guy 3 blocks inland. The price difference buys plenty of beach or parking passes to access the water.

[@JohnPeter-yf5jf]

Oh ya the people that have a non primary residence is who the raise in insurance is effecting

[@crow6676]

Mine has increases over 50% on auto and home owners. It’s terrible.

[@ProctectLoveOne1s]

I think if the home insurance companies want to raise prices I think people should be able to deduct it from their taxes also people are barely getting by as it is

[@toyman9642]

We had a basement flood due to a sewer backup at our home over 25 years ago. I found out that sewer backups were NOT covered at the time. Now, in our current home, we have house insurance "up to our neck." Fire, flood, sewer backup, waterline break, theft, wind damage, hurricane, vandalism, etc. We also have coverage for a hotel and meals if we're out of our house during repairs. I suggest that homeowners check their policies. You might be surprised what is NOT covered. We found out the hard way.

[@MyBizOnlu]

I have septic and it was only 6 years ago it was covered, cost almost 100.00 extra a yr but well worth it in my opinion, but overall getting ridiculous

[@SMSM-ue9zi]

In other word, ditch home insurance if you are rich. Wow, what great advice.🙄

[@liltsummerlin423]

My homeowners insurance cost me $1,280 a year when Trump was in office. Since Biden has been in office my homeowner with less coverage has increased to $3,200 a year 🤬

[@eddiecardona8584]

My house cost 120.000 at the time I bought it now my insurance cost me 4000 a year and rising

[@cashrules520]

Keep the bare minimum coverage and stash some cash

[@787UrbanApparel]

Love ❤ from Orlando Fl ... Mine went from $585 in 2010 to $7,785 in 2024 ... 😂😂😂 too much over-insuring around here , this year I may go with Lender Place Insurance , because they wont over insured me . And is not a beachfront mansion ; I bought an old 1960 ranch model in Orange County . Right in the Center of State and near Universal Studios . Best homes ever built around here , cinder block and roof frame is timber , not white pine . Love my little home ...

[@rmikel14789]

I think you’re going to buy a property in Florida, it needs to be an all cash, no mortgage, the home also needs to be a second home. Then the best financial senses is to go without insurance if you look at the insurance rates, think about how much you could repair or a contractor to repair for those rates? Have you took the insurance amount, yearly, and then triple it, and put it in a savings account for repairs? These are questions i’m asking about Florida. I would never buy a home now in Florida, you can’t finance a mortgage on a home where the insurance costs are going to go out of control and then the lender forecloses on you. only an idiot would do that. I don’t understand how anyone can justify who is not a millionaire buying a home in Florida. I don’t understand it.

[@rockystaatz521]

I don’t know if it’s legal in most places

[@dfv15]

It’s not a law that you must carry insurance, but it’s most mortgages will require a policy. Not having insurance but having a mortgage will send the mortgage in default and your loan becomes due immediately.

[@taps4615]

Ummmm Texas be like $6000 a year

[@rayr268]

Where is this because its just went to $5000 ye in denver for a basic house.

[@uriah117]

That national average looks NICE. I just got quoted 5850 for a single story home, up from 1900 last year. So much for the property tax relief...

[@eds5977]

I also remember that when people needed the insurance the companys didn't pay

[@Chano601]

We pay mortgage insurance? Homeowners insurance? Banks are always winning while screwing the middle man

[@Pirateslifeformematey]

All these pple dropping insurance perfect when a bad storm hits your house bye bye hahaha foreclosed

[@quartytypo]

People better stick with homeowner insurance no matter what the cost. Homeowners can't fix anything. People in the 1950s fixed everything. Today, it is a lost art.

[@TheLaydib21]

Not true.....hubby does maintenance and went to school for hvac...we haven't had to worry about calling anything out....custom built home 2018.

[@eddiecardona8584]

Why are home insurance rising when FEMA covers disasters that is the question

[@QuietStormX]

Homes in Wild Fire Zones and on Coasts with Wind off Ocean. Water and Hills. No Brick tough luck. LOL $$$$$$

[@MichaelBrown-ny3et]

Hilarious. Like it’s an option.

[@nozztheking8138]

Insurance rip. OFf

[@bargdaffy1535]

Yeah, welcome to the Extinction Economy, it don't get any better than 2023 from here on out. 🤣🤣🤣🤣🤣🤣🤣

[@stevemelton4388]

Really? I give you a quarter when your begging for money because your homeless

[@dotnothing5620]

this framing is farcical.

[@nozztheking8138]

The few who can't afford insurance ain't going to hurt the ins companies

[@yellowbird5411]

It's not the "few" I would estimate.

[@eds5977]

$1400 is cheap I paid $1800 after Andrew for a $60 k house

[@bryangriffin3139]

I would never cancel my homers insurance that’s insane

[@generaluser4145]

How about vote some more democrats in office (sarcasm)

[@TaataGeo]

Government should take on home insurance

[@334LIVING]

Hell no!!

[@ssuwandi3240]

Glad no longer my inflation.. Bidenomics 😂

[@fastm3980]

You must be smoking 🚬 something or super brainwashed

[@taobot8]

This is the glorious corner of the internet where anti-government sentiment suddenly dissolves when it becomes apparent to the 'big government is tyranny' crowd that the invisible hand of the market is pricing insurance to reflect the growing risks related to climate change. So, to kick things off, what type of government intervention or support are you willing to accept in order to shield you all from the economic risks that only grow everytime you crank your V8 Dodge Ram?

[@ssuwandi3240]

Sounds equally UNInvestable like China ?? At least China price is deflated not Uninsurable 😎

[@sylviafullerton7416]

I guess these companies are Democratic owned too..!

[@elondmv976]

Scam scam gov need to help us