Should This 73-Year-Old Drop Her $2,400 Home Insurance in Hurricane Zone?

A 73-year-old woman living in a Florida mobile home is facing a tough decision: should she keep paying $2,400 per year for home insurance that might not even cover replacing her home?

Her situation highlights a growing problem across America. Home insurance costs have jumped nearly 10% in just three years, forcing many homeowners to make difficult choices. The woman lives just 10 miles from the ocean in a hurricane-prone area, though she's been lucky so far with no damage.

Here's what makes her case tricky: • She owns her mobile home outright (no mortgage means no bank requiring insurance) • Her insurance has a $5,000 deductible (the amount she'd pay before insurance kicks in) • She says she wouldn't rebuild if a hurricane destroyed her home • Most neighbors in her mobile home park don't have any insurance

The expert advice is clear: Don't drop insurance unless you have enough savings to handle a total loss. This means having money to: • Find a new place to live • Replace all your belongings • Cover any liability if someone gets hurt on your property

About one in seven American homeowners now go without insurance, often because they can't afford rising premiums. But "self-insuring" (paying for damages yourself) only works if you have substantial savings set aside.

The bottom line: If losing your home would cause financial hardship, keep the insurance. If you have enough savings to start over somewhere else, you might consider dropping it — but always keep liability coverage to protect against lawsuits.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/several-hurricanes-have-come-close-im-73-and-live-in-a-mobile-home-in-florida-do-i-ditch-my-2-400-home-insurance-87397157?mod=mw_rss_topstories