“$28,000 for a 2,100 square foot condo? Are you kidding me?”

Hurricane Debby made landfall in Florida on Sunday before moving up the East Coast as a tropical storm. The National Centers for Environmental Information estimated the storm’s damage at $3.5 billion. Given Florida’s vulnerability to natural disasters, it’s no surprise that the state has the dubious distinction of having the highest home insurance rates in the country. However, the magnitude of the premium increases has left even multimillionaires reeling.

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Personal finance guru Suze Orman recently shared her experience with The Florida Insurance MarketDespite having a net worth of $75 million, Orman was shocked by the $28,000 annual insurance cost she had to pay for her beachfront condo in the Sunshine State. “$28,000 for a 2,100-square-foot condo? Are you kidding me?” she said in an interview with Dailymail.com, highlighting the gravity of the situation for Florida residents.

Not only is the cost astronomical for the size of the home, but there is always the risk that the claim filed will be denied. “I’m not paying $28,000 a year when the insurer will probably dispute any claim I get anyway,” Orman explained in the interview.

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She added: “Luckily, I have the money to insure myself.” As she has said before, she is a “very, very wealthy woman,” but she doesn’t like to waste money on certain things.

Self-insurance occurs when an individual or organization sets aside funds to cover potential losses rather than purchasing insurance from an outside provider. While this option may work for the very wealthy like Orman or the deceased Billionaire Charlie Mungerwho also argued in favor of self-insurance when it is affordable, it is not a viable choice for most homeowners.

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Homeowners insurance isn’t just a smart financial decision for most Florida residents – it is a requirement. If you have a mortgage in Florida, insurance is required to protect the bank’s interest in the home. This requirement puts many homeowners in a difficult position, forced to pay exorbitant premiums or risk losing their home. If you own the home without a mortgage, you will not be required to purchase insurance. However, it is highly recommended for your protection.

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Rising insurance costs aren’t just a problem for homeowners: they have a ripple effect across the entire housing ecosystem.

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Homeowners are the hardest hit…