Do you carry homeowners insurance???

Discussion in 'Homesteading Questions' started by Mrs_stuart, Aug 1, 2004.

  1. Mrs_stuart

    Mrs_stuart Well-Known Member

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    Who carries homeowners insurance...
    Do you own outright and still have insurance????
    If it is financed...you have to, right????

    We do have insurance, because it is financed with a bank.

    Belinda
     
  2. OD

    OD Well-Known Member

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    Our house is paid for, but we carry Fire, Wind, Hail, etc. on it. Homeowner's is so expensive that we can't afford it.
     

  3. Nomad

    Nomad Well-Known Member Supporter

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    We are buying our house and since it is financed we must carry insurance. But here's a good one. I received a notice yesterday in the mail that they are cancelling my insurance because my wife does child care in our home. Since losing my job earlier this year, we are doing anything we can to pay the bills and eat regularly. Somehow the insurance company found out that she watches a couple of kids part time and gave us the heave ho. Seems it's a liability issue. Course our agent says that he's pretty sure he can find me coverage on the secondary market. Gee, I wonder how much more that's going to cost me? Double? Triple? When it rains, it pours. :(


    Nomad
     
  4. Irish Pixie

    Irish Pixie "You have to be odd to be number one." Dr Seuss

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    We carry homeowners on the farm. We own the acreage outright (108) but have a mortgage on the house, barn and 5 acres. Because we can't see the entire acreage we carry high liability amounts, even tho the entire farm is posted, some yahoo comes over the line and hurts himself we can be sued. It's expensive around $600 a year but it's worth it for the piece of mind.

    Stacy in NY
     
  5. Ana Bluebird

    Ana Bluebird Well-Known Member Supporter

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    We own our home outright and still carry homeowners insurance because everybody is suing everybody else around here, even neighbors, friends, and relatives. Can't trust anyone. So far we haven't had to use anything but the wind blowing down that darn above-ground pool three years in a row. Finally got rid of that and didn't put one back. In our area insurance isn't too expensive, but we save a little each month (actually write ourselves a check) to save enough to pay the taxes (now THAT's getting high) and the insurance. I could get started on those property taxes but I won't.
     
  6. 1farmgirl

    1farmgirl Well-Known Member

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    We also just carry the fire policy. We can't afford the homeowner's. We only have coverage on about less than half of what our house is worth. However, I don't own the land or officially own the house, just do maintenance and upkeep on the land and house, so I guess that is why we were able to work it out that way. The homeowner's policy covers theft and any injuries to people in your yard or house (invited or not) and fire does not. Nomad, I am sorry to hear about your struggles. I can relate with you and your family. Too bad you couldn't find something in Arkansas. The rules and regs are much more relaxed here. (Try Northwest Arkansas first-that's where the bigger money is-Fayetteville, Rogers, Springdale, etc). We also have a child insurance (ARKids First) for people that don't have insurance, don't make mega bucks, and can't get medicaid, and don't have a lot of assets to fall back on. This is a big help when you've been downsized, or starting your own business. You can make up to around $32,000 for a family of four (I think) before you are disqualified. This is something I plan to check on later this year, because my husband is planning to go out on his own. He has a chimney sweeping business that he has been doing on the side for 8 years now. He has been building up his client base, and adding other services as he finds the need. Hopefully sometime within the next 6 months he will be able to go to a brick laying school and then that would round out the schooling he would need for his business. BTW, Nomad, if you were downsized because of jobs relocating out of the country, NAFTA would help with schooling to retrain in another area. (That happened here with a clothing factory).


    Kathy
     
  7. caroline00

    caroline00 Well-Known Member

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    we dont! Our place is paid for and we just cant afford it

    Nomad, when I did childcare, I got a rider from our inusrance company to cover it.
     
  8. whodunit

    whodunit Well-Known Member Supporter

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    I looked into liability coverage for a potential tenant that was going to do child care on my property. I don't remember the cost, but it was pretty reasonable.

    I would cease the child care for the time being (or make arrangements to do it somewhere else, like an in-law's residence) then see if your insurance company will reinstate you if you carry an additional liability coverage.

    It's worth a try.
     
  9. whodunit

    whodunit Well-Known Member Supporter

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    You are correct, you normally hav to have it when the house is financed. You are likely also paying PMI (Private Mortgage Insurance) unless you put more than 20% down when you purchased. This covers the bank, if you default on the loan. I believe most banks will allow you to drop this once you have 20% more in equity. It can add much money to your mortgage payment.
     
  10. mistletoad

    mistletoad Well-Known Member Supporter

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    We have homeowners insurance and a mortgage, but we would still carry the insurance if it were not required. When we rented we always carried renters insurance. I often wonder about the inequity when disaster strikes - the uninsured get rehoused, rebuilt etc. all for free and the insured get only what they paid for. I couldn't bring myself to count on handouts like that, so insured is the only way to go in my book.
     
  11. agmantoo

    agmantoo agmantoo Supporter

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    To control costs and still have insurance ask about the following:
    1) buy home owners with the highest deductible. Many people try to use the insurance as a home maintenance plan and it drives the insurance premium high in order to cover the nit picking expenses. In event of a catastrophic lost that is when one needs insurance. Losses of hundreds of dollars can be dealt with outside the coverage.
    2) with acreage buy a large liability policy, these are cheap. A million dollar coverage is slightly over $100. The insurance company may not pay for an incident but they will put their legal eagles in place to protect you against lawsuits. If you are running your farm as a business this expense is deductible.

    To avoid complications, do not try to get a home owners policy on a farm. Either cut the house loose and then get the home owners or go for a farm owners policy. Additionally, for just plain fire insurance, you should opt for at least 80% of the appraised value of the home inorder to comply with policy requirements and to get settlement without a hassel.
     
  12. mightybooboo

    mightybooboo Well-Known Member

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    I own and carry a very high limit homeowners policy.California is sue happy
    BooBoo
     
  13. Nomad

    Nomad Well-Known Member Supporter

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    Evidently the problem lies with all the child abuse cases involved with childcare. The agent said that millions have been paid out becuase of these cases and resultant lawsuits. Apparently, this is a fairly new issue. But, no first line carrier will touch us. I really don't want to air our dirty laundry, but we are barely surviving and without the money the wife makes, we would go under. I made the same mistake as many people who thought their job would last forever...I bought things on credit based on that income. If nothing else, I have learned my lesson. We have no inlaws that we could ask to help us with a building. Most of my familty lives in Florida and the wife only has one sister that doesn't live that close. My job was lost due to downsizing mainly because of poor management. It was an international company but privately owned and run by two guys. I've never seem such wasteful people. Course they decided to stop wasting money on my salary apparently. :rolleyes: Our insurance was about $600 a year for a house on a small city lot. I'm not looking forward to seeing what it's going to cost. If my agent can't find a carrier, the mortgage holder will find one and I know that's gonna hurt. I'm looking into training to upgrade my skills, so that I will be able to get a job again in my field. If my previous employer had kept up with the current software, I'd be employed now. Thanks for all the kind words and suggestions. I've had many ripples and a few waves on this pond called my life. The boat hasn't sunk yet and if I keep paddling and bailing as fast as I can we'll make it again.


    Nomad
     
  14. BCR

    BCR Well-Known Member

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    Nomad--maybe your wife can go to the kids' home to at least keep some income coming. If she is fully licensed in your state and/or belongs to one, she might qualify for a policy through a professional organization of daycare providers. Have you checked that out? Can you turn an outbuilding into a separate business to use only for her business to exempt your home?

    Edited to say that we do have homeopwner's and will always carry it. I have seen too many folks lose great portions or all of their equity due to tragedy. I do have a professional luiability policy that covers my work in my home for about $12 a month. I'm in a low risk profession.
     
  15. westbrook

    westbrook In Remembrance

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    I do own outright and yes I carry homeowners insurance! I wouldn't be without it. I also have disability insurance to cover anyone that comes onto my property to work. This added insurance costs me an extra $20.00 a year. I am able to hire help and not worry about being sued if they injure their back!

    I had a renters mother trip on the step going to the front door. Her glasses fell off her face (do you blieve this story?) and sued me for new glasses! I am so glad I had insurance.
     
  16. BamaSuzy

    BamaSuzy Well-Known Member

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    we have homeowner's because we have a mortgage (biggest mistake we EVER made was taking a mortgage on this place but that's another story) but we will always have insurance if we can at all possibly afford it....we lost a house to fire in 1983 and although we were underinsured, we still got enough to pay off that house and about $20,000 to use toward the other one we built....
     
  17. Okie-Dokie

    Okie-Dokie Well-Known Member

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    Yes. Every thing we have is paid for. We have zero debt load. We do have complete coverage. Homeowner's, wind, hail, tornado, a very large lilability policy. The whole thing. And a good thing too, after the tornado that devistated our homestead a few months ago. With today's sue happy society you would we would be really fool hearty to not have as much liablility coverage as we can afford.
     
  18. big rockpile

    big rockpile If I need a Shelter

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    We can't get Homeowners because we are so Isolated and heat with wood.

    big rockpile
     
  19. daileyjoy

    daileyjoy Well-Known Member

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    Is it true you can't get insured if you heat with wood? I remember hering that somewhere but cant remember where.

    Jennifer
     
  20. big rockpile

    big rockpile If I need a Shelter

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    Well thats one reason we can't.Plus we're not in sight of another neighbor.

    big rockpile