Lotto winnings down in flames in fire after house purchased with no Destin Florida homeowners insurance.
A lucky Santa Rosa Beach Florida lady won one million dollars recently with a scratch-off Florida lottery ticket. She took a lump sum payment, and it turned out to be about $500,000 after taxes. Then she bought her dream house in Destin for $400,000 cash. Sounds great, right? Except for one thing. She never bought homeowners insurance. She had already spent the remaining $100,000. She had no reserves.
The house burned the day she moved in. There was an estimated $150,000 in repairs needed and she doesn’t have the money to repair the damage to the kitchen, including appliances, drywall, and smoke damage.
Stunning. Shocking. How could this happen?
Well, you don’t need to buy homeowners insurance if you don’t have a mortage on your Florida real estate. Lenders, however, do require you to get insurance to protect the investment they have in your property if you get a mortgage.
If you pay cash for your Destin Florida home, then it’s up to you to protect your own investment. If you don’t get homeowners insurance, then you take the risk that if something happens, like this Destin fire, you will be financially able to have your property repaired. In addition, without insurance, you are also running the risk that if someone gets hurt on your property you may be personally liable for any damages and medical bills.
Destin Florida Homeowners Insurance Costs
The average cost of homeowners insurance in Okaloosa County is $2797, and in Walton County it’s $4337. If this lotto winner had paid that relatively small amount, her repairs would have been covered, less her deductible.
Finally, I have to question whether or not this Destin Florida home buyer got advice or encouragement to buy a homeowners insurance policy. In the end, it was her decision, but I would strongly encourage all homeowners to get insurance.