With home insurance rates rising, homeowners are increasingly opting out of coverage. In fact, 1 in 13 American homeowners is currently uninsured, according to a recent Consumer Federation of America study. While the number is relatively small, it’s grown from about 5% of all homeowners to 7.4% since 2019. Considering that the average annual cost of homeowners insurance for a $300,000 mortgage has increased 23% to $2,230 in the last year, it makes sense why some homeowners are foregoing insurance or letting their policies lapse to save money. But it may not be worth the risk; one disaster can ruin your finances.