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Back to the OP's question. We have a house in Fairhope, AL, about a half mile off of Mobile Bay. HO insurance with wind and hail coverage is $12K per year. And for $12K per year, there is a $50k deductible. I made a decision to pass.
So, I pay under $2K/year for fire and theft coverage and self insure for W&H. My next door neighbor does the same...they've been there for 22 years with no issues. I've had mine for 3 years...so as of now have saved about $30k to use towards damage that may never occur.
To do this, you must own your home free and clear as your mortgage company will require full coverage. Insurance companies NEVER lose. Quite the opposite. If you'll sleep better at night after writing that check, then by all means, do it. I sleep better knowing I'm not donating (as much) to the insurance company's impressive P&L statement.
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Mike
“I wouldn’t want to live under the conditions a person could get used to”. -My paternal grandmother having immigrated to America shortly before WWll.
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