We got our flood insurance bill this week and the cost doubled from around $500 last year to $900 this year. It is important to note that we have never filed a flood insurance claim. Actually we haven’t filed any kind of claim in the 30 years we’ve owned our current home.
Our home owners insurance went up $1000 last year and now we’re hit with a $900 flood insurance bill. Flood insurance premiums are set by the government as far as I know so there’s no going out to get a competitive bid for this type of insurance.
I have also written about the explosive cost of auto insurance here, which included the chart below.
Insurance is the new albatross around people’s pocketbook neck and the only way to deal with this is to fight fire with fire so I’ve been investing in insurance companies to offset some of the costs.
Rental Properties
Fortunately, it’s just my main home for now that I have to worry about with flood insurance, my rental portfolio consists of properties that are not prone to flooding so I don’t carry flood insurance and that’s part of my rental portfolio strategy to minimize operating costs. I do feel sorry for people that need to carry flood insurance on their rental properties.
Share The Wealth
Are your insurance rates growing by 20% to 40% year over year? If so, what are you doing about it?
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