A Florida homeowner paid off his mortgage, dropped his homeowner's insurance, and then watched Hurricane Milton tear the roof off his house about two months later.
What happened?
According to Moneywise, Hurricane Milton, a Category 5 storm that hit Florida in October 2024, tore the roof from Mike Parrot's Bradenton home. Parrot told WFLA News that he and his wife had paid off the property roughly two months earlier.
Officials condemned the house because the storm damage was so severe, and the couple moved into a backyard studio on the property while repairs were carried out.
Once the mortgage is paid off and insurance is no longer required by a lender, some homeowners cancel coverage to save money. In a state where premiums have surged, that can leave them without protection when a major storm arrives.
Why does it matter?
The risk extends far beyond one household. As Moneywise noted, Insurify estimated that about one in five Florida homes are uninsured, putting the state among the six highest in the country despite its significant hurricane and extreme-weather exposure.
Price is a major reason. Insurify said Florida had the nation's highest average homeowners' premium in 2025 at $8,292, compared with a national average of $2,948, after an 18% increase from 2024.
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NOAA figures cited by Insurify show Florida has had at least 34 weather disasters causing $1 billion or more in damage since 2020. Even homeowners who do have insurance can still face major gaps, since standard policies usually do not cover flood damage.
What can I do?
Paying off a mortgage may end the insurance requirement, but it does not reduce the need for protection. In areas exposed to hurricanes, wind, and water damage, going without coverage can put years of savings at risk.
Comparing policies, reviewing deductibles, and understanding exactly what a policy does and does not cover may offer an alternative to dropping insurance altogether.
Flood coverage may need to be purchased separately. FEMA has warned that just one inch of water in a typical home can cause more than $25,000 in damage.
As Shannon Behnken, a WFLA reporter, put it, per Moneywise, "A growing number of homeowners are choosing to take the gamble — and many have lost."
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