Wind/hurricane property insurance
Perhaps this is a really dumb question, but I have to ask it:
Hurricanes have a season, occurring within just a few months of the year, so why not carry wind insurance only in season for Aug through Oct or something?
Do the insurance companies drop you if you do this? Is it fair if they do?
Wind insurance is so expensive, literally adding several thousands of dollars to your property insurance bill per year and not really needed several months of it.
(Yes I know there can be very rare fluke storms out of season, but putting that aside for now.)
Am I being silly? imagine the savings.
The insurance industry has a term for what you are suggesting - it's called "Adverse Selection" and the companies go to great lengths to avoid it.
So, yes, insurance companies will not only drop you like a hot potato if you try it and you'll have extreme difficulty trying to find replacement coverage from a different company. It may not seem fair but that's the way it is.
Sorry, IslandBoomer but to use your words you are "being silly".
Just make sure if you self insure that you have enough money to rebuild your house and replace everything in it (as many were forced to do), if we were to have another Hugo or Marilyn type storm. Most people can't afford that and as sunshinefun mentions, not have
After my insurance company paid out after Hugo, they dropped me. I was paying $800 a yr. back then. Way higher these days. Still use the company that paid out after Marilyn but of course, at a much higher price.
Yeah, I just had to put it out there. Silly me 😉
My primary home is on the northeast coast of the US mainland and wind insurance is included in my policy- even for hurricanes, which we get bad here too now and then. But they keep the premium extremely low with a very broad sliding scale deductible that's based on the storm category when you make a claim. It's a great compromise if you can afford the larger deductibles.
Seems like that trend might be changing for the NE, given recent history.
True that. I moved from New Jersey to STX nine years ago. In that time, my old NJ neighbors have had several week-long power outages from storms, whereas in STX we had just one such outage (Hurricane Omar in 2008).