Senior citizens go without homeowners insurance amid soaring premiums [The Miami Herald]
By Toluse Olorunnipa, The Miami Herald | |
McClatchy-Tribune Information Services |
Seniors are more likely to own their homes outright, meaning they have the option of going without property insurance. As
Consider
Jacobs, 70, pays about
Jacobs, who saw his insurance premiums double this year, said it may be time to get rid of insurance and go "naked."
"The irony of it is the land is worth more than the house," he said. "If the whole thing blew away..."
His voice trailed off in thought as he weighed the macabre scenario of repairing a hurricane-damaged home without any insurance.
But, for Jacobs, the current reality -- rising premiums and soaring deductibles -- has become more poignant than the hypothetical nightmare.
"For next year I'm very seriously considering not having the insurance," he said, before pausing again to consider the risk. "Do I take the gamble? I don't know."
It's an inner battle weighing on the minds and pocketbooks of several seniors as they compare the rising cost of insurance -- along with medication, gas prices and taxes -- against their fixed incomes.
"These are not protected in any way," she said, reaching out to touch one of the windows at the one-story, eight-unit rental building she owns. "I was so incensed with that new deductible that it was an easy decision."
She fears what might happen if a hurricane were to strike, but said the increased deductible and premium would force her to pay more than
On paper, cases like Donly's are celebrated as success at Citizens, which is furiously trying to reduce its size and shed policies. When customers leave state-run insurance -- even if they end up in an uninsured no-man's land -- Citizens counts itself one step closer to its ideal size. The state-run insurer of 1.4 million policies would like to drop as many as 700,000 customers in the coming years.
Senior citizens covered by the state-run insurer also have to deal with limited fixed incomes, rising healthcare costs and stiffer insurance requirements targeting older homes.
"We're really constrained from taking into consideration those demographic issues," he said in an interview. "As humane as it might be to look at those things, we're simply unable to do that."
Property owners like Donly said there is no realistic alternative for coverage in the private sector. "My rents are lower now than they were six years ago," she said. "I can't raise rent because of the economy. I'm bringing in less, but then I get much bigger bills, so we're making less."
"I am on
Sen.
"Those on
This article includes comments from members of HeraldSource, part of the Public Insight Network. To learn more about the network or to join, visit MiamiHerald.com/insight. Toluse Olorunnipa can be reached at [email protected] and on Twitter @ToluseO
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Citizens Insurance: A storm over reinspections, rate hikes [The Miami Herald]
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