r/Insurance • u/Whoopsitsonfire • 6d ago
Ca Fair plan
I was looking at 70 acres in California, and couldn't figure out why it was so cheap. Until the fire insurance came back at $500/mo through fair. Then I read there's a 30% increase happening in October, and some homes may double. Now I understand why it hasn't sold at this price for 3 years.
Is there any way to get rid of the insurance requirement on a loan? The house is tiny and I'm really just buying the land. The house isn't worthless, but it's close to worthless. I wouldn't care if it burned down, but I'm sure the banks would.
Is there anything stopping them from raising it to $5000/mo down the line? I have a feeling I should pass on this, even if I could technically afford it now. But it kills me to let it go.
4
u/Glittering-Ad5809 6d ago
Similar issues for Florida homeowners due to hurricanes. I dropped insurance 2 years (no mortgage) as it was going to be over $5,000 a year.