Going Without Homeowners Insurance Policy In Florida Doesn’t Make Sense

In the year 2005, the New Orleans and Florida coasts were hit with seven disastrous hurricanes that made landfall. As a result of which home insurance companies were hit by an estimated $60 billion bill, making it the busiest year on record with three most devastating hurricanes, Rita, Wilma, and Katrina, together accounted for over $45 billion of total loss. The cost was simply too much to bare!

A Few Alternatives If A Homeowner Cannot Afford Homeowners Insurance Policy In Florida

Going without a homeowners insurance policy in Florida is not a good risk management choice for homeowners. But if you cannot afford to keep basic home insurance coverage, here are a few best alternatives to consider:

1. Borrow Money – Home equity line of credit 

If your home was damaged as a result of natural or man-made disaster while you did not have homeowners insurance policy, you could consider borrowing money, or one possibility is through a home equity line of credit, to make the needed repairs if you have enough equity and good standing with the bank.

2. Self-insure fund

You could construct your own emergency fund that could be tapped instead of filing a home insurance claim. A smart homeowner could save the money that he would have paid in premiums so can utilize that money when stuck making the repairs himself. But, the fund would have to be quite large to cover many unforeseen contingencies. You should consider what a roof or wall damage will cost you, should they become completely damaged.

3. Play the waiting game

As a homeowner, you could wait for home insurance rates to get cheaper but the fact is that the premium largely depends on certain factors and many home insurance companies will take into account those factors as a higher or lower risk.

Read more about: How To Gain Homeowners Insurance Premium Discounts In Florida?

4. A state regulated Fair Plan

Home insurance policies offered through the Fair Access to Insurance Requirements (FAIR)  plan are much more basic than a traditional homeowners insurance policy in Florida. The FAIR plan provides fair access to insurance for homeowners who are facing trouble ensuring their expensive property due to the reason that home insurance companies consider them high risk.

Protect Your Valuable Investment Now!

Diverse Insurance Group is the provider of cheap homeowners insurance policy in Florida which offers flexible rates for different coverages depending on the type of your property and other basic factors. If interested to know more about us, please visit our website www.insurefloridians.com.