A content creator recently went viral on TikTok after she and her husband boldly claimed that storm insurance is a big scam.
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Tampa Bay area entrepreneur Bunny Hedaya (@bunnyhedaya) and her husband Harry say insurance won’t necessarily save or help homeowners who experience property damage in the aftermath of Hurricane Milton. Explained.
“People think that if they have insurance after a hurricane, they can just build a new house,” Bunney says. She then turned to her husband, who was off camera. “I’d like you to explain to me how insurance works,” she asked him.
As of Sunday morning, they clip It has been viewed over 1.5 million times.
Why is storm insurance a scam?
Harry didn’t say a word even though he was breaking his storm insurance policy.
“First, let’s replace the word ‘gotcha’ with the word ‘insurance,’” he said.
He said storm insurance and flood insurance are “two different animals, and the line between the two can sometimes blur depending on the nature of the storm.” He also revealed that some homeowners may be able to purchase windstorm insurance without flood insurance, and vice versa.
He said if you have a mortgage, you need to buy both. But if you own a home, you don’t technically need insurance (though Harry said he doesn’t recommend it).
“Let’s just say storms and floods are a must,” he continued. “The problem with storms is [that] Your home is about as likely to be damaged by a hurricane or windstorm as it is by a tornado that hits your neighborhood. ” In other words, you need to be in the middle of the worst winds to be affected by a severe storm, he said.
He also said storm insurance comes with high deductibles.
“What a lot of people don’t realize is that the deductible is based on the replacement value of the home,” he says. So, if the insurance company determines that it will cost $80,000 to replace your home, and your storm insurance has a 10% deductible, the homeowner will pay $80,000 before the insurance company pays a penny. You will be expected to pay “$.
“So not only do you have to live right in front of the tornado, but you also have to pay $80,000 to get the benefit of storm insurance,” Harry concluded.
@Bunny Hedaya @Rich Mom Rich Dad Podcast ♬ Original song – Bunny🐰
What is storm insurance? Do I need it?
According to US News & World ReportThere are 19 states that require some type of storm insurance. The insurance does not cover water-related damage from storms, the company said. Instead, most standard policies include wind coverage. For this reason, most homeowners in storm-prone areas will need to purchase both a rainstorm and a rainstorm. and Flood insurance.
Wind insurance premiums vary by state, but standard premiums in Florida average $5,527 per year for $300,000 in home coverage. according to bank rate. The report noted that homeowners in Miami can pay nearly twice as much for the same insurance, so costs can vary across the state.
viewers are torn
Among the most popular comments on Hedaya’s video were those who agreed with her husband’s analysis of various insurance policies.
“Insurance is the biggest scam and they will literally do anything to not give you your money,” one woman wrote.
“America is an over-insured country and is not covered for anything,” added another.
A third commenter, who said he was an insurance agent, said he wholeheartedly agreed with Harry’s sentiments.
“As an insurance agent, I approve of this message,” she wrote.
But several others pointed out that the deductible is not as high as Mr. Harry said, and that if the storm were to hit, he wouldn’t have to pay as much as $80,000 upfront as Mr. Harry claimed. .
“The average person [pays] 2% deduction amount. In my case, it’s 8,000, not 80,000,” said one man.
Another woman said, “I hate insurance, and I pay a lot of money for good coverage, but my deductible is only 2,000 yen.”
Another viewer pointed out, “A 10% deductible is the highest deductible you can choose.” “The majority of people I know have 2% or 5%.”
The Daily Dot reached out to Hedaya via a comment on TikTok.
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