My folks don't pay for home insurance on vacation home

[Goldy1]

Speaking of insurance, my folks own a home in Michigan. It has been paid off. A few years ago they bought a Florida condo near Boca for 150K. It was one they spent about 30 g in upgrades, 10G was just to buy these hurricane proof windows. Other costs were California closets etc.
Today due to the market this home may sell for 130 to thier dismay, but that is besides the point.

My mom told me they elect not to pay for home insurance on the condo due to the high cost. They prefer to risk it. I forgot what she said it would cost, but it may be as high as several thousand. I know they put down 70K to buy it and are agressively paying it off early. I also believe the loan for the condo may have been done with a home equity loan on thier primary MI residence.

Doesn't it sound like a risk esp. considering my dad resides in the Florida condo about 8 months of the year(mom stays in MI more) and he is a heavy smoker. The condo was partially destroyed a few years before he bought it due to hurricane issues.,
I guess home insurance is more in Florida than MI. I know my home insurance is quite low in MI,

[kork13]

Originally Posted by Goldy1

I guess home insurance is more in Florida than MI. I know my home insurance is quite low in MI,

While this is very true (it can as much as double in some areas compared to most other states), no offense to your parents, but not having home insurance here in Florida (especially in a zone which has been hit by a destructive hurricane within the last number of years) is a bad idea at best (edging toward the 'dumb idea' region on the scale). Hurricanes hit Florida at least 4-5 times every year, often more. The level of damage which is HIGHLY probable ranges from broken windows (~$1k) to total loss ($150k). REALLY bad idea, and I would try to talk them into at least some limited form of insurance on it...

[gamecock43]

Ouch! Scary stuff. Insurance is higher because its more prone to disasters...so why the logic of not insuring the riskier home?? Anyways, hopefully the house is in the Tampa Bay area (no hurricane in about 80 yrs) and not on the east coast of FL.

[Joan.of.the.Arch]

I wonder if they could at least get insurance that would exclude coverage for wind, rain, and flood. If they haven't finished paying the mortgage, I'm surprised they are getting away with having no insurance.

A Floridian friend tells me she sees people leaving the state now because of inability to get or afford insurance. I suspect that the population of Florida is still growing though.

[simpleyme]

we choose to insure our paid for properties, but that's the beauty of having them paid for its a choice

if the house is owned out right and it a vacation house they would not be up a creek without a paddle if something happened to it its their choice to risk it ,that's a nice place to be I think

[Goldy1]

When my house is paid off, I will insure it still even it meant I had to go on the beans and ice diet. lol. It's the biggest pice of my assets esp considering the market crashing lately. Fortnately home insurance in Michigan is reasonable as of late.