Homeowners are increasingly forgoing home insurance, gambling that the likelihood of a disaster isn’t high enough to justify the cost of a policy.

Some skipping insurance say they are doing so because they can no longer afford the rising premiums. The national average for home insurance based on $250,000 in dwelling coverage increased this year to $1,428 annually, up 20% from 2022, according to Bankrate.

Others, particularly among the wealthy, say they have enough money saved to rebuild or move elsewhere should their home be destroyed.

[Bidenomics is one contributor to this, but it’s not the only contributor. Government price caps and mandates have made it impossible in some states for insurers to operate, while in others contribute to the higher costs in the risk pool. But this is a very bad idea for all of the reasons that reporter Veronica Dagher lays out and for one she misses: liability. Most policies offer some significant level of protection against liability claims such as personal-injury claims, and the insurers operate to minimize the claims they can’t get dismissed out of hand. Without homeowner’s insurance, people can lose their entire asset structure in such claims, and the umbrella coverage that would otherwise deal with these issues usually requires a homeowner policy to be in place first. — Ed]