Homeowners are increasingly forgoing home insurance, gambling that the likelihood of a disaster isn’t high enough to justify the cost of a policy, the Wall Street Journal reported. Some skipping insurance say they are doing so because they can no longer afford the rising premiums. The national average for home insurance based on $250,000 in dwelling coverage increased this year to $1,428 annually, up 20% from 2022, according to Bankrate. Others, particularly among the wealthy, say they have enough money saved to rebuild or move elsewhere should their home be destroyed. The risks of forgoing a policy are significant. When you don’t have insurance and your home is destroyed by fire, you don’t just lose your house and its contents. You might also have to pay for removing your home’s remains as well as the costs to rebuild it. Few people can financially withstand the loss of an uninsured home, according to financial advisers. It is particularly precarious considering the high price to rebuild or buy a home in many areas of the country.
