Haven't seen it. And for those with a mortgage, they won't get away without having insurance. Terms of a mortgage demand it. So this would work only for people who have no mortgage on their home. Those with mortgages could always have a super high deductible to decrease their premium costs.

Are there people who purposely don't have homeowners insurance? I guess the cost of not having insurance depends on whether something happens to the house and the value of the house. The older a home, the more likely something will happen. I wouldn't recommend it.

If one has a reserve fund of some sort, that will cover repairs etc. Its the liability of someone suing you that remains a problem. 

An interesting question, because this is becoming more common in Florida. 

   As you know, rates in our State have doubled (or more) in many locales.  A lot of people who don't have a mortgage are ditching their homeowner's / hazard insurance policy.

     At the very least, get Liability Insurance, or an Umbrella Policy. 

   If your house burns down you can still live in an RV on your vacant lot until you build a new house.  But if someone is injured on your property, and a Civil Court awards them a large amount you may find yourself up the proverbial creek.  

   But a question for Florida lawyers is this... in Florida, we have the Homestead Law to protect us against Judgments and creditors.  That is in our State Constitution.  So if someone falls on my porch, goes to Court and wins a one million dollar judgment against me, can it be collected?  Is that judgment enforceable?   If not, then do I need Liability Insurance on my house?

I don't know how popular that is but I would not go without home insurance

Unless the house is mortgage-free, not possible. Besides, it is reckless to forgo homeowner's insurance as anything can happen!

Sounds like too much a risk.  And if you are holding a mortgage, you just might want to have a quick conversation with them ... not a good idea.  I am not actually seeing that as a trend.  Are you?

If you have a mortgage, no insurance is pretty much out of the question.  

First off, if you have a mortgage, you must have insurance. It is a requirement of the lender to protect the lender's collateral.

If you are do not have a mortgage, all the value of your home is part of your estate, part of your wealth, and probably the larges part of your wealth. Insurance may be expensive but it is not as expensive as what it would cost you to replace your home if it underwent major damage or was destroyed.

So, no, I do not think self-insurance is widely popular.

No one with a mortgage can get away with that except condo owners I was surprised to learn from a Farmers Agent in 2021, since in a condo the HOA covers the structure and grounds and all you're really insuring is contents.

I disagree though, because in my whole 54 years, my only property insurance claim was on my Townhome, essentially a condo and it was for our kitchen and it paid off beautifully for a kitchen remodel when suddenly one night 5 minutes after cooking dinner, the entire cabinet system on the wall collapsed to the floor in the loudest crash of ceramics, glass and snapping wood I'd ever heard.

To each their own, I really do not care what others do in this regard.

Haven't seen it, certainly wouldn't do it.

I had a relative of a client buy a home in Denver, and she never had insurance on her Florida home, nor did she get any on the home here she bought with cash.    I advised that is not a good decision, but ultimately her decision.

Poor idea not to have insurance, if you have to go with a large deductible is my suggestion.

Peter Mohylsky - I recommend everyone refer to their State Department of Insurance, in TX it is called TDI. It provides up-to-date information about self-insurance vs home insurance with or without a mortgage. Because of high risks (doesn't matter if it is mortgaged or not), there are always high risks. TX also includes what consumers should look for in different policies, such as what it should cover and what it doesn't cover.  Of course, as many have answered, you can't get a mortgage without insurance. Deep pockets or not, if there is no mortgage, not having insurance is risky business. In reference to condos, it raises the question, how many condo unit owners think they only need to insure their own unit and don't know if the owner of the condo has insurance on the dwelling or sold it to someone who doesn't have the entire condo insured?

I would never not have any insurance, but I have raised my deductible considerably.

I don't know of anyone who owns a home and doesn't have insurance. I'm sure there are people in that category but I don't know them.

OH when I hear about folks who own homes on the river with no insurance I cringe! Yeah sure they live up high on bluffs with sea walls . . . but all it would take is ONE hit to Hoover or Davis Dam to make them regret that decision . . .

I don't think it's a good idea & I'm probably not understanding your version of 'self insured'. 

It's not really something that I'm seeing.

That would be a risky roll of the dice.  I cannot imagine not having homeowners insurance. 

Won't happen if you have a mortgage, and otherwise it's pretty risky. But no doubt some will tempt fate to save money.

I recently hear of some people I know doing this, but most have a mortgage and therefore the lender requires it.

Need to pay off your mortgage before this becomes an option.

I do know plenty of rural folks who do not have any insurance, but then they also dont have much to lose.

We find that it pays to shop around every few years, most companies will have reduced rates to attract new business, and most will drop your rate to keep you if you threaten to leave.

It's not an option on financed properties.  I don't think anyone out here has the money to rebuild a $1m plus home they did 80% financing on.

Only for those with deep pockets.  Those who drop their insurance are most likely those who cannot afford it and need it the most. 

It's not something I would ever do but some people have been complaining about their large rate increase and claiming they were going to self insure.

Their thinking is that they can put the premium amount in the bank to build reserves and use that if they sustain a loss which I think is a false sense of security. Whether any of them have actually done so, I do not know but it would not be a wise move.

If something does happen that is huge loss most people would be wishing they hadn't made that decision to self insure.  And as everyone else has mentioned you can't do that if you have a mortgage.  Is it really worth it?  Depends on the situation. 

This is not a choice that I would make or recommend.

Boy, I think I would always keep insurance on my house.  I am sure some people would want to save the money.  Figure mortgage company would make you have insurance

Not very popular if you have a mortgage (since the Mortgagor will insist you have HOI on their collateral)

I have never really heard of that, I better read all of the other answers and do some research.

If you home is lien free you can go the self insurance route. Many with an older manufactured home, where insurance is cost prohibitive or non attainable, self insure. Some waterfront properties suffer the same fate. Insurance costs are on the rise, like everything else.

I would never do such a thing.  Can you afford to rebuild your home should it burn down?  

Haven't seen it.  I've had cash buyers who didn't have it in place at closing, but got it the same day.

I could see how it would be tempting to skip the home insurance payments, they can be high, but not wise to do so. Have not run into any uninsured.

There are certain insurance needs that supersede budget saving measures.  Homeowner's insurance, health insurance and auto insurance are a necessity and very few will go without them unless their finances are to the point in which there is not enough money to pay them.