Are There Any Alternatives to Traditional Home Insurance in Fort Lauderdale?
Many homeowners in Fort Lauderdale today feel discouraged about property insurance – for obvious reasons. Premiums are so high that in some cases, they surpass monthly mortgage payments. In addition, denied property home insurance claims in Fort Lauderdale are a perennial issue. With so many challenges, some homeowners are considering alternatives to traditional insurance. What are your options in this regard?
Self Insurance
Perhaps the most obvious alternative to traditional home insurance is “self-insurance.” This is already a popular option in Florida, Puerto Rico, and many other areas that face continuous storms. With insurance costs reaching sky-high levels, some are choosing to simply set aside a certain amount of money each month for potential repair costs.
There is no “official” way to self-insure your home. You will not need to deal with any insurance companies, and you are responsible for your own financial security net. If you believe that your premiums are too high, think about what might be a fair amount to pay each month. Next, calculate whether that amount will actually cover the cost of rebuilding your home – assuming that you save for several years.
According to Insurance Journal, it will take you about 11 years to save up $250,000 – assuming you set aside $1,000 each month. Self-insurance is generally a more appropriate choice for high-net-worth or high-income individuals. That being said, it may also be a solid choice for those with relatively cheap homes that would cost very little to rebuild.
Loans/Gifts From Family, Friends, and the General Community
Faced with the cost of rebuilding your home after a major storm, you might also reach out to family and friends for financial assistance. These individuals may agree to give you low or zero-interest loans. By asking multiple individuals, you might be able to scrounge up enough cash to cover home repairs or rebuilding. That being said, some of your friends and families might ask why you never obtained insurance.
Another option is crowdfunding through popular platforms like GoFundMe. Although there is no guarantee that the community will be sympathetic to your struggle, this at least has the potential to cover some or all of your costs.
Downsize or Sell the Home
If premiums are simply getting too much to handle, it might be time to consider selling or downsizing. One of the key benefits of renting is that you do not need to worry about property insurance. Only landlords shoulder this responsibility. You might also want to downsize, as your insurance costs are based around the cost of rebuilding your current home. A smaller, less expensive property may require lower insurance premiums.
Contact Our Fort Lauderdale Property Insurance Lawyers Today
At Geyer Fuxa Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.
Source:
insurancejournal.com/magazines/mag-features/2024/03/04/762506.htm
