Like most Americans, I pay a mortgage note on my little acre. The bank requires that I maintain homeowners insurance. They roll the insurance and taxes into an escrow account. We pay them a monthly note, they pay the insurance and taxes from the escrow account. It is all standard practice.
I live in Louisiana, a truly backwards state in many respects. We have hurricanes, which damage houses. That is reflected in our homeowners insurance. After Katrina, Rita, and more recently Ida in 2021, a number of companies declined to do business in Louisiana. Those that remained, jacked their rates.
Finding affordable homeowners insurance in Louisiana became a challenge. Everyone's rates went up, including PawPaws. As a result, our mortgage note increased.
I just got back from the bank, and we think we have this mess straightened out. We hoe so. Insurnace is one thing that I do not want to worry about.
5 comments:
Central Florida here (Orlando area) -- our rates are out of sight and we have the same issue with companies pulling out years ago. Big problem as I see it is some folks just keep building and rebuilding in horribly dangerous places and the insurance companies just kept playing the game.
I used to know of a place in the Covington, LA area that sat right on a wide bayou. Hurricane wiped it out. Rebuilt better. Next one wiped it out again, insurance paid again and they rebuilt better. THREE rounds of that. Last I saw it decades ago you couldn't recognize the place as it once was. It was a REALLY nice place, not the camp that it began. Insurance built it little by little and everyone else paid for it.
Florida is just a few years ahead of you on the insurance bloat.
And California is worse... Daughter's NOT sure they will be able to find affordable or ANY home insurance next year.
South Texas speaking here. Yes, insurance on homes is increasing. Really hard on people who are forced to cover comprehensive due to still owing on property purchased. Flood insurance as well is skyrocketing. Our home policy this past May increased $200 and change. We've never made a claim in 25 years. Hurricanes are a pita.
I hope you are done with insurance worries for now Pawpaw.
I've lived in coastal SC & now Gulf coast Alabama & through some terrible hurricanes & have been paying homeowners insurance for 40yrs & have never made a claim. Must be living right.
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