‘We Can Keep Paying It, But Should We?’ Why One Colorado Couple Wants To Cancel Their Homeowners Insurance

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Homeowners insurance is usually seen as a necessary expense for protecting one’s biggest investment. But for some, the rising cost has raised a tough question: Is it worth it to keep paying?

A couple in Colorado recently shared their frustration on Reddit about their homeowners insurance bill skyrocketing to more than $7,200 a year — an increase that felt hard to swallow, even with a fully paid-off home. They asked the online community: “We can keep paying it, but should we?”

With no mortgage or loans against their house, they feel caught between financial pressure and the risk of going without coverage. They admit that if their home were destroyed, they couldn’t afford to rebuild it. Renting in their area would likely cost between $2,500 and $3,000 a month, adding another financial strain.

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According to CBS News, Colorado is facing some of the highest homeowners insurance premiums in the country. The state ranks second nationwide for hail insurance claims and for the number of homes located in high-risk wildfire areas. This combination pushed average premiums up more than 50% between 2019 and 2022, especially after wildfires like the East Troublesome and Marshall Fires.

“We are in the hardest market in a generation for property insurance,” Carole Walker, executive director of the Rocky Mountain Insurance Association, told CBS News. She explains that more people live in wildfire-prone areas than before, and “record-breaking catastrophes” are becoming more common.

The Reddit couple isn’t alone in these rising costs. For homeowners, like Melinda Endres of Broomfield, this has meant a sharp increase in bills, with some monthly payments jumping by nearly $440.

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Many commenters on the Reddit thread and insurance experts caution against simply canceling homeowners insurance. One Reddit user, who is both a former insurance producer and a lawyer, warned: “Do not go without homeowners insurance!”