Episode Show Notes / Description:

• Facing a large homeowners insurance premium increase? You might be tempted to go "bare" — meaning no homeowners insurance if you own your home outright without a mortgage.
• Going bare can be very risky, especially if you live in disaster-prone areas (hurricanes, fires, earthquakes, hail). If your house is damaged or destroyed, all costs come out of your own pocket.
• If you have significant savings and plan to self-insure, that might be an option, but be cautious.
• Another alternative is raising your deductible to a very high amount (e.g., 20% of your home's value) which could lower your premiums substantially.
• Some insurance companies offer options to delete certain catastrophic coverages but keep liability protection — worth exploring with your agent.
• If you decide to go bare, consider parametric insurance policies as a way to offset some risk.
• What is parametric insurance?
  • A simple, standalone policy that pays a flat amount of money if a specific event or trigger happens (e.g., a category 3 hurricane within 40 miles).
  • It pays out a fixed sum regardless of actual damage and does not involve traditional claims adjusting.
• Parametric insurance won't cover your entire loss, but it can provide funds to help with living expenses or rebuilding after a disaster.
• Important: Parametric insurance does not cover liability claims if someone is hurt on your property. Maintaining proper liability insurance is crucial.
• Parametric policies are generally cheaper than full homeowners insurance and may serve as a stop-loss tool if you choose to go bare.
• Discuss your options with your insurance agent, though many may have limited experience with parametric policies.
• For more detailed information and personal consultation, visit riskcoage.com or use the provided link below.
• Remember, you also have access to live, one-on-one consultations with licensed experts across insurance, investigations, civil mediation, real estate, business development, and more through our platform.
• If you found this episode valuable, reach out with questions or comments and explore deeper discussions with actual humans, not just automated answers.