Without this coverage, homeowners are left vulnerable to fires, burst pipes, theft, vandalism, and windstorms.

"Some skipping insurance say they are doing so because they can no longer afford the rising premiums," said The Wall Street Journal. New Bankrate data shows insurance on a $250,000 home jumped to $1,428 annually, up 20% from 2022. That's about a $119 monthly payment.

Amy Bach, executive director at United Policyholders, a national nonprofit insurance consumer-advocacy group, said an increasing number of homeowners in the past several years who have no mortgage or inherited a home are abandoning insurance because they can't afford it.

"It is a risky proposition to go without home insurance, and you need to fully understand the financial consequences if you lose your home," said Noah Damsky, a financial adviser in Los Angeles.