Suze Orman Ditches Homeowners Insurance After Getting An Absurdly High Quote: ‘$28,000 For A 2,100 Square Foot Condo? Are You Kidding Me?’

Hurricane Debby made landfall in Florida Sunday before traveling up the East Coast as a tropical storm. The National Centers for Environmental Information estimated $3.5 billion in damages from the storm. Given Florida’s vulnerability to natural disasters, it’s no surprise that the state holds the dubious distinction of having the highest homeowners insurance rates in the nation. However, the extent of premium increases has left even multimillionaires reeling from sticker shock.

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The personal finance guru, Suze Orman, recently shared her experience with Florida’s insurance market. Despite having a net worth of $75 million, Orman was shocked by a $28,000 annual insurance quote for her oceanfront condo in the Sunshine State. “$28,000 for a 2,100-square-foot condo? Are you kidding me?” she stated in an interview with Dailymail.com, highlighting the severity of the situation for Florida residents.

Not only is the cost astronomical for the home’s square footage, but there is always a chance the claim filed could be denied. “I’m not paying $28,000 a year when the insurer will probably contest any claim I get anyway,” Orman explained in the interview.

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She added, “Luckily, I have the money to self-insure.” As she’s said before, she’s a “very, very wealthy woman” but doesn’t like wasting money on certain things.

Self-insurance occurs when an individual or organization sets aside funds to pay for potential losses rather than purchasing insurance from an external provider. While this option may work for the very wealthy like Orman or the late billionaire Charlie Munger, who also advocated for self-insurance when affordable, it’s not a viable choice for most homeowners.

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Homeowner insurance isn’t just a smart financial decision for most Florida residents – it’s a requirement. If you have a mortgage in Florida, insurance is mandatory to protect the bank’s interest in the home. This requirement puts many homeowners in a difficult position, forced to pay skyrocketing premiums or risk losing their homes. If you own the home without a mortgage, you won’t be required to carry insurance. However, it’s strongly recommended for your protection.

Rising insurance costs aren’t just a problem for homeowners – they have a ripple effect throughout the entire housing ecosystem.

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Homeowners are getting hit hardest. People are seeing their insurance bills triple or quadruple. Citizens just announced a 14% rate hike in June, which will take effect in 2025.

First-time homebuyers have it rough, too. It’s tough to get a foot in the door between sky-high home prices, mortgage rates, and now insurance costs. Insurance can eat into your buying power, especially if you live in a risky area.

Sellers aren’t immune, either. Buyers are thinking about the total cost of ownership, including insurance. So, they’re not willing to pay as much for a house. This means lower selling prices and homes sitting on the market longer.

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You’d think renters would be OK, but they’re getting caught in the crossfire. Landlords are passing their higher insurance costs onto tenants through increased rent. It’s just another expense renters have to deal with.

You’re still not completely off the hook if you live in a safe area. Insurance companies spread their risk around, so everyone’s premiums increase slightly. It’s a domino effect.

When even millionaires like Suze Orman are stunned by insurance prices, it speaks volumes about the severity of the situation in Florida. Whether you’re a current homeowner, a prospective buyer, or someone considering self-insurance like Orman, it’s a good idea to consult with a financial advisor who can help you make informed decisions based on your specific circumstances and risk tolerance.

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This article Suze Orman Ditches Homeowners Insurance After Getting An Absurdly High Quote: ‘$28,000 For A 2,100 Square Foot Condo? Are You Kidding Me?’ originally appeared on Benzinga.com