America's Home Insurance Problem Will Explode in 2025

One of the biggest issues in 2024 has been home insurance. And I've been trying to let people know, sounding no alarms, it's only going to get worse from this point. It's going to get more expensive, more expensive, and more expensive. It's not fair. It's not fair that like this is even something that I think anyone has to go through. And 2025 won't be any different, guys. I know, I know, I know. You guys are listening to me. You're like, Orlando, come on, man. Are we going to get any breaks in 2025? Well, no, you're not. This is the worst. Unfortunately, the way that the economy is going, in my opinion, it's continuing to go in that downturn direction. And home insurance is going to get caught in that crossfire. We're going to talk about it, guys. My name is Orlando. Welcome to the channel. Make sure you hit that like and subscribe button. It really does help out the channel. And also, too, I have a newsletter. Yes, a newsletter. And guess what? It's free. You cannot be free. It will give you tons of value. And also, if you need any type of financing, that's commercial or investment property financing. I am your guy. I've been a lender for almost 20 years. I can assist you with that. That information is in the pinned comment in the description, guys. America's home insurance problem is set to intensify. Now, guys, listen again. This is something that I've been yelling. We've seen California. We've seen Florida. We've seen Texas continuing on and on. New York, New Jersey insurance is becoming a real issue. Ladies and gentlemen, we have problems. And we're not talking about a small, small issue. We're talking insurance. Insurance and property taxes are now more than the actual mortgage payment. What the hell's going on? Look, I'm not making this stuff up, guys. That is the truth. Insurance and property taxes are now these two things are now more than the actual mortgage. So now you have to understand, OK, if I buy a house, not only am I just buying this house with a mortgage on it, now I have this insurance and property taxes that seems to have no ceiling. We've got trouble. Let me say it again. Seems to have no ceiling. You understand what I'm saying? So this is the reason why I tell individuals, hey, make sure before you jump in to buy a house, I'm not saying that you shouldn't buy a house. I'm saying that you need to be cautious. If you're buying a house in Florida, what are you doing? What are you doing? If you're buying a house in California, what are you doing? Are you crazy? Like you, you must be getting a great, great, great deal. Listen, I don't want anyone, anyone sending me a message saying Orlando, hey man, I'm buying this condo, man. And I'm like, OK, man, listen, you can do what you want. But at the end of the day, don't be surprised. Listen, you're watching this video, right? Don't be surprised if you get a special assessment. That's 50, 60, $200,000. Don't be surprised if your property taxes go up. Don't be surprised if insurance goes up on you. All of these things will continue to get worse and worse and worse. In 2025, in my opinion, as Americans flock to places in the U.S. that are vulnerable to natural disaster, private home insurance companies are running the other way. The problem has left a rising number of homeowners with just one option to cover property damage. The insurers of last resort. Now, these insurers of the last resort, we've done these videos and I've told you guys these insurers like citizens who are insolvent. That they listen. Your governor said it. Your governor told you guys we don't even have enough money to pay out. You guys, if anything happens now, what happens when you can no longer get insurance from State Farm or Allstate or any of these other big, giant insurance companies, what happens when you can no longer get insurance through them and you now have to go to citizens or a state run insurer who will provide you with insurance for arm and a leg and your firstborn child? Do you say, you know what? I'm going to go into financial destruction. Financial destruction by signing up to these insurance companies who now you're paying 20,000, 25,000, 30,000 dollars a year. A year. Guys, listen, I'm not making this stuff up. Matter of fact, let me go and show you this bill, this bill from State Farm, just from one single family home. Now, if that doesn't scare you, I don't know what will. I don't know what will. This is the reason why it's so, so, so important for you to do your research and make sure that, OK, I'm going to jump into a house and I want to buy this house in 2025. What am I going to do if I'm in this situation? And we're not even talking about if you lose your job, if you have a layoff. Why put yourself in this position? Again, this is the reason why I say this is the reason why I say, you know what, I think it's best if I just go ahead and stay this one out. If I just go ahead and just sit on the sidelines with a purpose, then I'll get my credit together, save more money and continue. But the question is, is what happens to individuals who are already in a house today? They bought a house, you know, a year ago. And now they're in the situation where the mortgage is already high because they bought at a high interest rate. Maybe they overpaid for the house, too. And then you find out that your insurance is going to be super expensive and you cannot afford it. What do you do then if you can't have any insurance? Any insurance? You can't afford the insurance. And then on top of that, you won't be covered by the cheaper insurance. What do you do then? Do you just go without? Do you just say, I have to see what happens? Well, you're forced to. Awkward. So awkward. That's the unfortunate scenario. And then what does that mean? That means that you now, if you try to sell that property, now the individual who's going to buy that property, now what do they have to do where they're going to have to go? Look, they can only look in the same places you looked. Well, we've all been there. That's what's going to happen. And now they're going to say, well, I'm not going to pay 20. Are you crazy? You think you think that I'm going to pay 22, 23, twenty five thousand dollars a year in insurance? You were paying that. I'm not going to pay that. Matter of fact, if I do pay that, you need to drop the price dramatically. Fact. But you're not going to drop the price dramatically because you overpaid for the home. So now you're stuck in the catch 22. The scale of homeowners losing their plans became clear on Wednesday after a Senate Budget Committee investigation found that private insurance non-renewals spiked threefold in more than 200 counties between 2018 and 2023. Now, imagine if you were just getting this news today, your leaders, your politicians are now saying, wait, wait a minute. Oh, we're just finding out this news today. They're about two years late. I've been talking about this for two years. And now the regular media now your congressman, he's telling you, oh, you guys are getting let's let's let's look into this. A recent study by Harvard University Joint Center for Housing Studies found that between 2018 and 2023, a number of properties enrolled in California and Florida's insurers of last resort more than doubled. A similar trend is playing out in Louisiana, while Florida has reduced participation this year. It still has the highest enrollment in the country. These guys are late. This has been happening, guys. We've been talking about it over and over and over. I've been pointing out, oh, you're going to buy that condo? You shouldn't. Oh, you want to pay for that overpriced home? You shouldn't. Oh, you want to buy a home in the layoff season. You want to buy a home while the while the economy is going down. You shouldn't. And what people what have people been saying? Orlando, what are you talking about that? This is a great economy. Are you joking me? Like, it's the best economy we've ever seen. Have you seen the stock market? It's booming. Everything's going up. So that must mean the economy is great. I mean, stock market is doing great. But when you go to the grocery store, what happens? You're paying two times more for eggs. Ragu sauce is $20. Make it make sense to me. Try. Try to go finance a car right now. See what that number is. Try to go buy a home right now. Is that is that more expensive? Huh? Sounds like a great economy. Oh, layoffs, plenty of layoffs, right? Plenty of layoffs next year. 2025, people are cutting individuals before Christmas, the day of Christmas, two days before Christmas. Who does that? But it's a great economy. OK, then it goes on to say the problem isn't isolated to the most predictable states. The Senate budget found that the rate of homeowners losing their private insurance also rose in Hawaii, North Carolina and Massachusetts. You don't say. Remember when these trolls used to come up to my channel? Listen, I really appreciate you guys. Even the even the haters, even the trolls. I really appreciate you watch it. But remember when these guys used to come on to the channel, put in the comments that Orlando inventory, there's not enough inventory. Prices are going to continue to go up and demand is going to be just through the roof. Guess what? Insurance is going to come down. Property taxes. They're going to be nonexistent in a year, man. They're going to be they're going to continue to go down. Oh, those interest rates. Three percent. We're getting back to three, at the minimum, four percent. That's what they said. And they were like, Orlando's just trying to keep you out of a house. Orlando is against you owning a house. He wants you to stay a renter forever. Where have I said that? I'm just trying to give you the details. I'm trying to explain to you, explain to you the reasons why it's probably not the best time to buy. I'm just saying, be cautious. I'm I'm pro owning. You can own a house. Great. I love it. I think you should own a home. But should you own a home going into financial destruction? Should you be owning a home if you're going to be filing bankruptcy next year? Should you be owning a home if you see that there's price cuts and more price cuts and more price cuts and more price cuts happening in your neighborhood? Maybe you should wait. Maybe you should say, oh, let me let me let me just check this out and see what's going to happen. That's what I would do. And I'm giving you the advice that I would personally do. But these guys are telling you probably realtors. They're telling you, bye, bye, bye, bye, bye. It doesn't matter if the insurance is up. It doesn't matter if real estate taxes go up. It doesn't matter if the property drops in value. It does not matter to them. Try calling a realtor. Try calling your real estate agent when your values drop. Try calling your real estate agent after you find out, oh, man, my insurance is going up and my taxes is going up. They can't be found. Obviously, there's some good real estate agents, but most of them, they ghost you. That's what I'm saying. I'm just saying, be cautious. And a lot of these guys said, Orlando, it's only Austin. Orlando, it's only Florida. Orlando, it's only California. Next thing you know, they name in all 50 states. Next thing you know, you're getting reports like this. They say this state, this state, this state, this state, this state. Name all of them. Just say nationwide. I'd rather die than say it. And I've been trying to let individuals know that this situation with insurance, property taxes, it's going to spread. And if you think that is just happening in California, if you think it's just happening in Florida, you are gravely mistaken. It is going to spread, spread, spread. These insurance companies are doing insurance companies do try to make as much money from your premiums without providing you any money in a claim. Wait, that's illegal. And I told individuals that that's how insurance companies work. And everybody was like, well, you know, my insurance company, I've been with Geico for 20 years. They would never. I just spoke to Jim. He's the rep. He just told me the other day, if you got any claims, if you got any claims, put it on my desk, I'll get them approved. What happened? He denied your claim. These people will try to make it seem like our family. You're you're my friend. But if it doesn't make business sense to them, they won't approve it. And it doesn't matter how close they know you, how many times they've taken you out to lunch, how many times they bumped at you at your kids, you know, sports functions and spoke to you. It does not matter. Doesn't matter how many computer generated happy birthday cards and Christmas cards they've given you. It does not matter. At the end of the day, at the end of the day, if it doesn't make sense to these companies, they will not approve and make the change. It's the evil world we live in. So again, what does that mean? That means you have to do what's best for you and your family first. Again, that's the number one thing that I push. Do what's best for you, not do what's best for everyone else. Do what's best for you. That means not being loyal to these companies, that treating them just like they treat you like a number. So then you treat them like a number. You say, I'm going to go where I can get the best deal. I'm not I'm going to be loyal to them no matter what they charge me. I'm going to be loyal to them no matter what. Because at the end of the day, at the end of the day, I promise you these insurance companies will deny a claim. And even though everyone else is making a claim, these guys will tell you, well, we're not sure if it's wind damage, but you just went through a hurricane and all the houses on your street are destroyed. Well, was it wind? Was it water? That's what your insurance company is going to do. We don't know which one it was. Ah, man, I'm dead. So as always, I hope you got value out of this content, guys. And it's going to get worse before it gets better. Look out for yourself. Make sure that you're reading in between the lines, but you won't get all of your information from this one video. No, you know better than that. You know, you have to watch this video right here. It will give you information on the housing market, financial news and get you into your first rental property. I'll see you in the next one. Thanks.