At Idaho Select Insurance in Meridian, ID, we’ve been receiving more inquiries from homeowners about self-insuring their homes. As home prices and home insurance rates rise, some may consider self-insurance as an option. Here’s what you should know.

Homeowners Insurance May Be Required

If you have a loan or mortgage on your home, self-insurance is likely not an option. Your lender will probably require you to carry home insurance. If you fail to maintain it, they can force-place insurance on your home, which is costly and not in your best interest.

When Your Home is Mortgage-Free

If you don’t have a loan or mortgage on your property, you may no longer be required to carry home insurance. While this may seem liberating, it can also be risky.

You Will Absorb Any Losses from Damages

If you choose to self-insure, you are entirely responsible for any damage your property sustains. This can be substantial in the event of a devastating fire or stale. If you’re not financially prepared to absorb such a loss, it can lead to financial ruin.

Risks of Liability Claims

While you can put a number on the financial value of a home, there are no limits to the potential liability you may face from an accident injury liability claim. This adds to your risk of self-insuring.

You Have Options

There are alternatives to going without insurance or completely self-insuring. To limit costs, consider minimizing your insurance coverage. Think about lowering your coverage or raising your deductibles before opting for self-insurance. The risks may not be worth it.

Contact Us

If you don’t have a mortgage and want minimal home insurance, contact us at Idaho Select Insurance in Meridian, ID. We also review your current policy and ensure you are in compliance with your lender. We can provide basic coverage, which is preferable to losing self-insurance. Contact Idaho Select Insurance today.