Homeowners Insurance in Orlando, FL

Self-Insuring Your Home

As a responsible homeowner, you must financially protect your property and assets. However, while securing adequate home insurance may be a common loss control measure and generally advisable, traditional coverage can also be expensive. With this in mind, exploring alternative methods for financial security, such as self-insuring your home, may be worth your time.

How Do You Self-Insure Your Home?

Self-insuring your home essentially means choosing not to work with a traditional insurance agency or company and instead setting aside a nest egg or rainy day fund that can serve as financial security following various incidents affecting you or your home. This approach could entail bolstering and maintaining your traditional savings or otherwise retaining financial assets to tap into during times of need.

Can You Self-Insure Your House?

Self-insuring a home can be an attractive approach to risk mitigation, but you should analyze its pros and cons before fully committing to it. Opting to self-insure your home may be a tempting financial opportunity, as you could save on the premiums you would otherwise pay to your insurance company. However, these short-term savings may pale in comparison to the out-of-pocket expenses and losses you may face without traditional coverage.

Even if you have the necessary assets, funds and resources to handle significant out-of-pocket costs following various incidents, such as fires, floods and burglaries, you may also be accountable for other requirements. For example, if you’ve purchased your home with the help of a mortgage, most lenders require you to carry traditional homeowners insurance as long as your loan remains outstanding. As such, self-insuring would not be a viable option.

Learn More

At Florida Insurance Group under the Lee R. Rogers Agency, our dedicated team has over two decades of experience serving homeowners and families in the Orlando, Florida, area. We will draw on our extensive knowledge and resources to help you understand an appropriate approach toward insuring your home and maintaining financial security. Contact us today to learn more.