These are individual decisions that are likely based on an individual’s financial situation. Homeowners who do not purchase homeowners insurance are considered self-insured, meaning that the individual homeowner is financially at risk in the event of a loss, rather than an insurance company. If an individual can’t afford insurance, they likely can’t afford to lose a house, which is possibly the most expensive asset they own. DIFI encourages homeowners to have insurance as it creates resiliency to recover financially from catastrophic loss. 

DIFI staff have participated in emergency resource centers when wildfire or flooding catastrophes occur, and have seen firsthand when homeowners chose not to purchase insurance, suffered a loss, and then regretted the decision