Some homeowners going without insurance due to soaring cost

The cost is increasing to the point that some homeowners are choosing to go without insurance altogether.

Choosing between insurance and medicine

Like Cristean Stallworth, homeowners across the country face tough questions when it comes to increased premiums.

“Do I pay my homeowner’s insurance or do I get my medication? Do I pay my homeowner’s insurance, or do I buy me something to eat,” she said.

Barbara Campbell says she takes good care of her home, recently buying new appliances, even a new roof.

Still, her combined auto and homeowners policy kept going up.

“They started raising the monthly premiums by $35 or $40 a month with no explanation,” she said.

She feels it’s unfair.

“I do,” she said, “because we all work hard and when you put forth the effort, you don’t need some corporate company come and just smack us in the face because they want more money.”

Why costs are rising and some things you may be able to do

Homebuilding costs and severe weather, such as two major hurricanes this year, are two big drivers of higher rates.

The company Insurify projects rates will rise 6% by the end of 2024, putting the average rate around $2,500.

That’s after a nearly 20% increase between 2021 and 2023.

NerdWallet’s Kimberly Palmer says most people auto-renew their policies, rather than shop around for different quotes.

She says ask your insurance provider about discounts that are available such as bundling or going paperless.

“If you did any sort of home renovation or upgrade to your home, maybe something that made it safer, that can be a way to get a discount,” she said.

According to the Insurance Information Institute, however, 12% of homeowners have no coverage.

Many can no longer afford it these days, and so go without coverage and just hope they don’t have a major claim.

Homeowner Frank Morales says as expensive as it is, he would not want to get caught without proper coverage.

“You don’t want to lose everything and then not have a way to get any of it back,” he said. “These are your investments. This is the biggest investment you’ll have.”

So talk to your agent about some things you can do to lower your rates, so you don’t waste your money.