CORPUS CHRISTI, Texas — This week, the Insurance Information Institute reported that for every dollar taken in during 2023, insurers paid out almost $1.11 in claims and expenses – a cost that will likely be passed on to the consumer.
As home insurance premiums go up, so does the fight to keep up at a time when many households are struggling to pay for other needs. It has a growing number of homeowners wondering whether to do without insurance altogether.
Ron Snouffer, CEO of National Claims Negotiators, told 3NEWS that home insurance rates continue to rise, with no relief in sight.
"I think the average in the U.S. is about $4,000 a year, which is almost 50 percent more than it was just a couple of years ago," Snouffer said.
While buying a home is a point of pride for many, even considering the expense that comes with it, what happens when you can no longer afford those expenses?
"It comes down to putting food on the table or paying for homeowner’s insurance in a lot of cases," Snouffer said. "The people we are seeing hurt the most by this are over 65, the elderly who are on fixed budgets."
For some, there is an option.
According to the U.S. Census Bureau, roughly 40 percent of Americans have no mortgage to pay because they own their home outright. They have either made all their payments, paid for a home in cash or perhaps inherited the property and are not required to have homeowner’s insurance.
It seems that an increasing number of those who fall into that category are willing to drop their insurance and take their chances, a gamble that could backfire, according to Snouffer.
"My personal opinion is that you should always have insurance," Snouffer said. "Worst case scenario, you should have what’s called Catastrophic Insurance, for hurricane, tornado or a fire that burns down the building.”
Those looking for ways to save may want to try increasing their deductible and asking their agent about discounts. That can include having multiple policies with the same insurer or getting senior citizen and loyalty discounts.
Also, don’t be afraid to re-shop an insurance policy to make sure you are not missing out on better coverage or better rates with a different company. However, Snouffer says to compare policies and make sure you are getting the same coverage.
Speaking of insurance, if our recent scare with Hurricane Beryl has you reconsidering whether to add homeowners or flood insurance, the time to do it is when the weather is calm. Keep in mind that most insurance companies impose restrictions once a storm is approaching and has been named.