Homeowners Skipping Out On Insurance

Posted in Home Insurance

July 2nd, 2009

Though forecasters are predicting at least 10 hurricanes this storm season and premium rates are down, some homeowners on the Atlantic coast are shying away from home insurance due to high rates. Some say the tough economy is to blame. It seems that rate decreases simply cannot offset job losses and other financial setbacks.

The decision to forgo something as major as home insurance comes at a time and in an area where insuring for the replacement costs of a home is vital. If a hurricane were to tear through the area, some homes may cost as much as $20 million to replace. It doesn’t take a rocket scientist to figure out that someone who cannot afford a monthly home insurance premium certainly cannot come out of pocket to replace a home.

To help some homeowners acquire some level of home insurance, Globe Insurance has created a program called “Choices” that allows them to pay for the sum that they want to insure for. The catch, however, is that the amount insured must represent no more than 30% of the replacement value of the home.

For example, if you insure a $20 million home for $2 million and have $1 million in damages, they will take 10%, or $100,000 and give the homeowner the remainder of the money with no conditions attached. This option in home insurance can help some gain comfort in knowing that at least a portion of their home can be covered if it sustains damage in a storm.

Since the economy is still recovering from the recession, it’s tough to say when homeowners will feel fully comfortableinsuring their homes. Until this day comes, uninsured homeowners along the Atlantic coast will have to cross their fingers and toes that no damaging storms show up for an encore performance this year.

Are you sacrificing home insurance due to high monthly premiums? If so, Go Insurance Rates can provide you with FREE home insurance quotes in minutes, which could save you hundreds on your premiums each year. Best of all the process is entirely secure and easy.