Suze Orman Isn't Wasting Money On Insurance For Her Condo – 'I'm Not Paying $28,000 A Year When The Insurer Will Probably Contest Any Claim'
Suze Orman, the finance guru known for her sharp advice, has a bone to pick with home insurance companies. At 72, she's decided enough is enough for the wild costs of insuring her Florida beachfront condo – and she's speaking out.
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In an interview with DailyMail.com, Orman said she's been quoted $28,000 yearly for home insurance on her 2,100-square-foot Florida condo. Let that sink in for a second. "$28,000 for a 2,100-square-foot condo. Are you kidding me?" she said, shocked by the price tag.
Luckily for Orman, she can self-insure, meaning she doesn't need the policy. But her worry? Most Americans aren't in the same boat, and she's worried this insurance crisis could push the American dream of homeownership even further out of reach.
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Orman didn't hold back, explaining how climate change is wreaking havoc not just on the environment but on our wallets too. "Climate change is going to make a big difference in people's desire to own their own home," she said. "Look at what's happening in Southern California. Look at the devastating hurricanes that are coming to places where hurricanes weren't so prevalent before."
And the numbers back her up. The National Oceanic and Atmospheric Administration (NOAA) reported 28 billion-dollar natural disasters across the U.S. last year. As you'd expect, this has sent insurance costs soaring. According to the National Association of Realtors, the average home insurance premium is now $2,377 a year – and rising. Homeowners can expect to pay 6% more by the end of the year.
In Florida, NAR reports the average insurance price to be around $11,700 for 2024. According to their estimates, Louisiana homeowners can expect to pay close to $8,000 by the end of the year. "It's possible that the highest-risk areas will become uninsurable," says Betsy Stella, vice president of Carrier Management and Operations at Insurify, as rising risks make coverage increasingly difficult to obtain.
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Orman warns that if these insurance prices keep climbing, many will think twice about homeownership. "Real estate is unpredictable. I never would have thought to advise homebuyers, ‘Oh, you better make sure you can afford a quadrupling of property insurance in the future,'" she added.