Canceling home owners policy for homes owned without a mortgage

[Amir Navabpour]

I have owned rentals for about 7 years and in that time I have put in a few claims. Seems like no matter what the issue is they reject it. eBay even told me after the last one that putting in claims will increase my policy premiums. The latest one was for hail damage I had a roofer checkout who thought I should get something approved. Of course the insurance adjuster didn’t agree. Insurance in general seems like a borderline scam to me.

The main value I see in the policies is the liability portion. But I have an umbrella commercial liability policy for that. Curious if anyone has ever considered canceling their home owners policies for homes they own free and clear? Seems like a waste of money. I think one would only regret this decision If their home ever burned down or a natural disaster hit. I talked to a friend of mine who sold insurance for 15 years and he was also saying that often times when a natural disaster hits the insurance companies will claim bankruptcy forcing the government to step in