homeowners' insurance

Have to take up for us insurance types here for a minute. We see the bad stuff on a daily basis, so yes, we tend to be a little on the tin foil hat side on occasion. Case in point: last week, I got a phone call from a client that had been out of town and when they got back, they had storm damage to the house-all the power was cut and everything in the freezer and fridge was destroyed. Tell me how many of us can afford to just out and replace all that? Not many. That is why we carry insurance.

It is not a scam. It is a gamble---you gamble that you will have a loss, and they gamble that you won't. Where a lot of people go wrong is they don't ask questions, they don't get an agent that knows his stuff and cares about the clients (they are out there-I am one of them that does), and they don't read the policy. They want the cheapest lousiest coverage they can get, and yet want it to cover everything under the sun. I can most likely sell it to you (there are exceptions) but it is gonna cost. That is the rub. I tell my clients-read it and if you don't understand it, come to me and I will go over it with you, and if I don't know, I will get the answer.
On the other side of that, a lot of times, the general populace tends to want to scam the insurance companies by filing bogus claims, so that makes the insurance companies wary. If everyone would treat everyone the way they want to be treated, then people would not have this problem.


ETA-as far as the people in California, Florida and Louisiana, talk to them. I would be willing bet that a good many of them ASSUMED what was covered and DIDN'T ASK. Yes, the hurricane coverage, flood coverage (which by the way, is only available thru the NFIP and only if you qualify per Fed standards, not insurance), and mudslide and earthquake insurance is normally available, but it is not cheap in those areas.
Trust me, none of the agents I know like telling someone that their claim is not gonna be covered. I wake up in the middle of the night worried about clients. They become our friends, especially in a small town, and we want what is best for them as well. We are NOT the BOOGEY MAN

Okay so you get insurance, just in case. Just in case happens, your insurance company (whew) pays it, then drops you. Meanwhile, you can't get insurance again, or if you can, the premiums are so high, you might as well save or invest the money yourself. Which is our preference.

I had a small house fire about 20 years ago. Insurance company paid, then dropped me. My future premiums were so expensive after that it was all I could do to pay them.

About 5 years ago, we bought a new tractor and decided to finance it at 0%. It was stolen. Our insurance company paid it, but no company would ever touch us again. We paid cash for our next one and it's not insured.

These days, we pay cash for whatever we need, including medical. If we can't pay for it, we don't get it. Our vehicles have liability only on them. For the folks who carry insurance on everything, if you invested that same money, you'd be way ahead of the game, but more importantly, you wouldn't be contributing to a system that isn't there to protect you, it's there to make a profit. No insurance, no scams.

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To all of those who don't insure, all that I ask is that you self insure, AKA take the money you would have spent on insurance and sock it away any way you like so that you can afford to pay the piper if something goes wrong, and not go crying to the government (my tax dollars) for help because of your own stupidity. I buy insurance and self insure depending on my assesment of the risk, I will let you know how it works! Some simple ways to avoid wasting tons of money on insurance are to not buy expensive cars, don't let your teenagers drive (that's what my parents did!), don't buy a bunch of expensive personal junk you feel you need to insure to protect your "investment" AKA jewlery, guns, coins, collectables, computer stuff not covered under your regular homeowners. Never buy anything in a floodplain! Never buy whole life, buy term and invest the difference if you feel so compelled.

If I'd have done that, I'd be DEAD.

How would life be without your hubby?

.

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If the grass looks greener it is probably over the septic tank. - troy n sarah tx

Our existance here is soley for the expoitation of CMG

I'm unclear on how the propensity of insurance companies to drop you after paying a large claim is relevent. Isn't it still better to receive the payout on that large claim? Then they drop you, but you lose the payment too. Seems like a free (alright, not free, cheap) bite at the apple.

CJ, I agree, we also only have what we can pay cash for. (and what we've got is all we need or want) No credit cards, no debt.
But we do have homeowners insurance. Tornados in our area? (having moved from the desert to the Ozarks, the reality of a tornado touching down near us) well, it Freaked me out! It might never happen but if it does we will be compensated.

I am with CJ on this.And I wish we lived in the Ozarks too.Wife won't go.

We built this house and we can build another.Built my sons house too,live there till another is done.Sometimes its to expensive to be PROTECTED from the cradle to the grave,I like independence.

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Pro Libertate!

Congratulations on being "independent" of a private, consensual contract between two parties for mutual benefit. You're an inspiration.

And I am not alone

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Pro Libertate!

The original post was about homeowners insurance but Health Insurance was brought into it so here's my $.02. At age 36 I was diagnosed with cancer. I have gone through 2 surgeries (in 2 mos.) the cost so far well over $10,000.00. Now I am going through chemo, cost $4,000.00 per month for about 6 mos. Next I will undergo radiation cost, not yet know but will be high. Afterward I will go through 1 more sugery, cost probably close to $10,000.00 again. I will have scans done every 6 mos. for 3 years, cost $8,000.00. Now we have medical insurance, not because dh or I thought we would need it, we're young and in good health (or so we thought) but we have 2 young children and kids get hurt/sick a lot especially when they are in school so we pay for health insurance.

I am completely sold on the health insurance issue at this point, I have known people who have had to file claims on their homeowners as well and feel that I would much rather be protected. Sometimes, what you think will never happen to you, DOES!

amen

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For those that don't have medical insurance, I hope you live complete and uneventful lives.

I just had surgery on one shoulder and will have surgery on the other in the next month. Total $'s will be north of 50 grand. That would all be on me if it weren't for insurance. These surgeries are due to abnormal bone growth in the shoulder. It's not like avoiding an accident.

How would you pay for it without insurance? Are you willing to go destitute due to not being able to pay? I'm not.

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"They laughed, because he was different"

"He laughed, because they were all the same"

We've been through this twice. First for my son when he became a type 1 diabetic. 2nd time for myself when I started having heart trouble. We paid for these bills cash. I chose to pass on the valve replacement operation. Will it kill me? Who knows. If it's my time to go, I guess so. If not, I'll be around a bit longer.

Prescriptions and surgery are options. It doesn't ever seem to occur to anyone that they don't HAVE to choose either. Yes, I am fully aware that sometimes death is the alternative.

Everyone has choices to make. You have to make the choice you feel is right.

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http://tinksquared.com

This issue really tears me in two different directions. On one hand, I'd like to have the peace of mind that insurance brings. On the other, I can't afford medical insurance.

I'd like to present my father's case for consideration. He was a city police officer until he retired a few years ago. He had great insurance during this time. At the time of his retirement he was paying about $150/month for insurance for he and his wife. In the three years that have passed since then, he's been diagnosed with diabetes. They keep raising his insurance rate. He's now paying about $720/month. That's not a typo, it's supposed to be a seven.

Now my father has always had his ducks in a row. He planned very well for retirement, or so he thought. Everything he thought he'd have to live on is going to pay his for his health insurance. My father likes to travel and even though he's retired now, he working so he can pay his health insurance and maybe save up for a road trip.

I'm researching medical savings accounts paired with high deductable insurance for him now. I can't see giving the insurance company $10,000/year. My dad's only 54 BTW.

Oh, and they've recently informed him that his rates will be going up again.

What is he supposed to do? He's not going to be able to pay for it for much longer if they keep raising his rates.

RedTartan

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As much as I don't like to admit it, but we need some type of nationalized healthcare. Your father's example is just one of many that I've heard about. Its just extorting the consumer. The ones who can pay on their policies are taking it on the chin. The ones who don't, or who decline health coverage, eventually get it paid anyway through some type of social program or in the case of real big debt, bankruptcy.
What do you all think happens when you go to ER or have an emergency and you can't pay the bill? They make you sign for it anyway, and then they come after you. If you don't pay, eventually they write off that charge and the rest of the paying people's rates go up to offset it. There is no free lunch.
As for homeowners insurance, let me relate to you my experiences. I had a house in the city where I paid $278 for about 5 years, and then the rates nearly doubled to $500 a year for insurance. The doubling came right after a storm that I had. I paid it because I was required to by the terms of my mortgage. In year #6, I had a devastating hailstorm come over the house that destroyed the roof. That was a 4K payout. Year #7, the garage burned due to arson and that was a 3K payout. So 7K came back to me when I didn't have it. I was in the house 10 years. I came out ahead on the losses if you consider what I paid out of my pocket.
The new farm has insurance of $478 a year. I consider that a reasonable sum to pay given my house is valued at 80K and if it burned, I'd be totally out of any resources to pay for a rebuild.
So its all in how you look at things. Even if I had no mortgage, I doubt I'd have enough money saved up to rebuild a building if I had a fire or storm come through. I consider insurance a cheap investment as a hedge against the inevitable calamity that will come with this weird weather we have now.
JMHO on it.

I do understand.

I have renters who have been at the other end of that slope.

He is 68, a diabetic with high BP, high Cholesterol and was medically disabled 20 years ago with a nerve problem in his neck/back. She is 55 also a diabetic with high BP and high cholesterol. She worked as a receptionist at a car dealership with no medical coverage.

Their combined monthly meds ran them over $1000.

With his SSA, and her fulltime job; they could not afford to pay: rent, drugs and eat. They chose to stick with the insulin, to only take half-doses of their BP drugs every other day, and to stop taking everything else.

We dropped the rent to half, until she was finally able to get a different job where they included a medical plan.

Now they are covered again by her new job, but for a couple years, their finances looked bad.

I made that choice many years ago. Ended up having to file bankruptcy because of outrageous medical bills (was in the hospital three times and had two surgeries within three months time...not to mention all the doctor visits). NOT having health insurance nearly made us (me and two children) homeless.

Of course, I had the choice not to have the surgeries, but then my children would have grown up without their mother.

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The response of such companies as State Farm down here in MS after Katrina proved just how correct that you are (about insurance often being a scam). The fact that they (State Farm) were allowed to remain in this state (they should have been banned from the state after being made to pay what they owed) after renegging to such a large degree proved that the state`s Insurance Commisioner was in bed with them (proven by campaign contributions) and led to his being voted out of office by a surprise (to some, but not to me) landslide in the recent election.

Insurance in not needed in every case. We do not need homeowners insurance. It would be a waste on an assest- money. The premium cost would be 1/3 of the cost of the stucture cost and items with in the structure. In the 4 years of living here I am ahead of the game. It is all math.

you are correct in that case, as long as nothing happens in that 4 yr span, you are golden, if you put the money that you would have paid out on insurance aside. That is called self insuring- and works to a degree for a lot of people. I choose to self insure on a couple of things I have-my horses, the hubby's boat etc for the same reason that you do-but my house and contents-no way. My children depend on me to provide a shelter for them, clothes to wear and food to eat. I do this by working and maintaining insurance on my very modest home. I do mean modest-832 sq feet for 6 of us, plus a one car garage converted to bedrooms for my teens.


Since I do this for a living, let me help just a little on what the policy that I sell mostly covers: (and know that you can add on to it, this is just the base)

**house
***outside structures (10% of house amount)-storage bldgs, above ground pools, fences, etc.
***liability
***medical payments for guest injuries that you are not liable/negligent for (liability covers it if you are)
***additional living expense-20% of the amount of your house coverage. This is so that if the house burns etc, and you have to live elsewhere while the house is being rebuilt etc, we pay the rent/utilities and move expenses of the new place for up to 1 yr while you continue to pay the expenses for the old house. Most folks can't pay rent and mortgage utilities on 2 places at one time
***contents coverage-this is all your clothes, furniture, linens, kitchenware,groceries (have you priced spices lately?), guns, jewelry (up to a certain limit, in this case $2500 total on guns, 2500 on jewelry and furs,) sports equipment (inc fishing rods etc), business equipment on premises up to 2500, lawnmowers, tools, kids toys, homeschool supplies (I spent a small fortune on that stuff and guard it zealously even though I am not homeschooling at the moment).
***fungus and mold up to 10% of house coverage
***building ordinance 10%-if the building codes changed after your house was built and we have to go back in AFTER A LOSS and rebuild etc, we have to go back to code and this is expensive so you have 10% to do this.
***extra coverage on the house itself (20-25% depending on the policy)We make sure that the house is insured to what the replacement cost is, and if we are off, we pay the difference up to 25% more than the face value-example : the Marshall Swift Beck calculator we use says the house would take 100,000 to knock down and rebuild. 3 yrs later, a storm knocks that same house down and the price of materials has jumped, we will pay up to $125,000 (plus building ordinance coverage if codes have changed) to put that house back like it should be.
***fire dept charges up to 500. Some firedepts charge when they are called out. We pay up to $500 of that.

There are a bunch more things that are covered, but these are the biggies.
I just thought I should shed some light on things that people may not think of as being an issue, but can be huge. Little by little, they are dealable, on a large scale, not so much.