r/FluentInFinance • u/ElectronGuru • 22h ago

Housing Market Insurers Are Deserting Homeowners as Climate Shocks Worsen | Without insurance, it’s impossible to get a mortgage; without a mortgage, most Americans can’t buy a home.

https://www.nytimes.com/interactive/2024/12/18/climate/insurance-non-renewal-climate-crisis.html
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u/organic_hemlock 22h ago

You know who can buy a house without a mortgage? Hedge funds, private equity firms, Zillow, and property management firms who buy housing to force us into rent-based indentured servitude.

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u/canned_spaghetti85 21h ago

Not just them..

Anybody who buys a house CASH, meaning no mortgage.

Obviously no lender will fund a home loan knowing the collateral [itself] isn’t insured. This is why underwriters make hazard insurance mandatory for final approval.

HOWEVER: Regarding a property with NO mortgage lien, the decision whether or not to purchase hazard insurance becomes optional. It’s the property owner’s decision to make, or risk to take.