Home insurance increase

[Zee09]

I never looked into this but I wonder if there is an insurance product that protects you without having to buy homeowners. I bet there is someplace. Maybe

I second that.

 

[Zee09]

Look up "Basic Hazard Policy" and "Fair Plan" for alternative insurance.

 

[dishdude]

Yes.

Without insurance you have to pay for the attorneys to defend you against the claim. Penny wise, pound foolish as they say.

 

[odie]

Lands are flooding that were not in flood plains due to heavy rainfall . So , policies change . Watched a PBS documentary over 10 years ago that was about the financial ( higher taxes ) burden on government ( local , county , state , federal ) due to harsher weather . Also , talked of insurance companies going bankrupt or policies ( home , car , etc. ) being to costly for most people . And here we are .

 

[Dave Hess]

Without insurance you have to pay for the attorneys to defend you against the claim. Penny wise, pound foolish as they say.

I got the money….

 

[The Critic]

I got the money….

How much are you saying each year, by self-insuring?

Didn't you used to be an insurance agent yourself?

 

[dishdude]

I got the money….

Yes, I know. You sent me a random screenshot of your Vanguard account a few years ago. It has nothing to do with if you "got the money" or not, it's about what risk makes financial sense.

 

[Dave Hess]

Yes, I know. You sent me a random screenshot of your Vanguard account a few years ago. It has nothing to do with if you "got the money" or not, it's about what risk makes financial sense.

That Vanguard account has more than doubled due to the manipulation.

Trust me….. if someone staged a slip and fall, sued me and put a lien on my house, there might be a mysterious electrical fire at my house due to old wiring…….

 

[dishdude]

That Vanguard account has more than doubled due to the manipulation.

Trust me….. if someone staged a slip and fall, sued me and put a lien on my house, there might be a mysterious electrical fire at my house due to old wiring…….

Brilliant! That'll make it all go away.

 

[Cujet]

Our flight department has participated in some storm relief flights. Mostly flying needed supplies to the hardest hit areas.

What was truly stunning was the level of destruction the water causes. Wind is bad when strong. But rising water, whipped up by strong winds is unreal and can wipe an entire neighborhood clean. With the exception of one house.

My point is that there sometimes seems to be a home or homes capable of withstanding the onslaught. One homeowner in the Florida Keys said that a boat was slamming against his home during the storm with 4 to 6 feet of ocean water. He had rising water damage inside, but no structural damage. Poured concrete walls, hurricane windows and doors, metal roof, etc. He was back up and running after the storm.

We have seen this over and over again. The one takeaway I have is that building near the beach is risky. That risk should be understood by the homeowner.

I'm not near the beach, I'm about 12 miles inland, and my home is rated for 145MPH. It's built quite well. If I were to do it again, I'd insist on even more structural strength, maybe a 175MPH rating.

 

[Snagglefoot]

It’s edging up here in Western Canada due to forest fires. Insurance companies will not even issue new policies during the summer, when fires are raging. You don’t want be be in a postal code that has had evacuation warnings.

 

[alarmguy]

Lands are flooding that were not in flood plains due to heavy rainfall . So , policies change . Watched a PBS documentary over 10 years ago that was about the financial ( higher taxes ) burden on government ( local , county , state , federal ) due to harsher weather . Also , talked of insurance companies going bankrupt or policies ( home , car , etc. ) being to costly for most people . And here we are .

The weather in any area is not a constant.
The media is in business to make money and make reports on things that will create more market share for the company = profits.

This is why everyday in the media there is never a good day in our lives, we love to see and read misery. It’s why the news is 24 hours a day in your face on every electronic device.

Which brings me to the point where is the reporting on the good weather? The areas that used to get hit by storms and flooding that haven’t?
For every area that does there is another area that no longer does.

Perfect example is reporting on a hurricane the last few days knowing it will not come even within 1000 miles of our country. Yet we see dramatic full size IR images of it all the time a Cat 5 storm and stories how it might affect us. To the point that some Americans think we maybe affected! LOL

Now it’s ohhhh be careful it might create dangerous rip ties and waves along our coast LOL And they will keep at it until the public is no longer entertained.

Anyplace in the headline that says Lee may not come anywhere near the USA and check back in five days? LOL
Oh but watch out for dangerous waves! LOL

 

[DwightFrye]

For those who decide to self insure I am reminded of when in 2003 wildfires swept through my neighborhood and destroyed over 300 homes. At that time the homes were valued from about $650k to well over $1 million. The homes were built in the late 1970's through mid-1980's. There were a lot of original owners who were retirees and who had long since paid off the mortgages on homes they probably bought for well under $100k. Many of them were on fixed incomes and let their insurance lapse.

Not only did they lose their homes, but they had to pay huge amounts of money to have their lots cleared of the remaining debris, burned up automobiles and everything else before they could even be sold to someone who planned on building a new home on that lot.

While I am P.O'd that my homeowners insurance has tripled, my home is paid for. And has appreciated in value by $50k per year for the 4 years that I have owned it. It may well provide a nice income at some point if I decide to do a reverse mortgage on it since I don't plan on leaving my estate to anyone. Not insuring it would be very foolhardy.

 

[alarmguy]

I got the money….

Yes, I know. You sent me a random screenshot of your Vanguard account a few years ago. It has nothing to do with if you "got the money" or not, it's about what risk makes financial sense.

Well,(Im saying this sincerely and honestly)
First off many people with wealth or even better said those who plan and can afford a loss do not buy Insurance. Insurance is for those who can not afford a loss. It's a product produced by a corporation to make money off the public. So successful there are insurance agents on every street in America. Massive investments by the public and institutions of these insurers by buying their stock on Wall Street, some pay quite handsomely as far as a solid investment. I have a TINY investment in one of these companies who for the last 30+ years pays me a solid return on some money I have with them. EVEN when interest rates were the lowest point in history a short time ago they were paying me a return (dividend) of 5%+annually. I do not hold stock in this company.

Much of the public does not think that way, just like they used to think that they had to pay to watch TV. It's took years for them to realize they can cancel their TV subscription. The human race in general follows a small percentage of the minority.

Anyway, with insurance. Insurance companies are selling you a product for profit. In this case its a product that people never see nor most never use! *LOL* Insurance companies make money, that is their business. The markup up on your home insurance is in the stratosphere. If you can afford to, you can keep those profits for yourself by self insuring exactly as the insurance companies that are insuring you do. It's just takes some planning or wealth for a product you will most likely never use. I wonder how many people ever thought about insuring themselves even if they did not have the resources. Such as paying a premium to themselves over time and have a reserve that was made by a HELOC that is invested in solid returns someplace and pay off that HELOC with what the premium might have been. (just an example of creative thinking, have no idea how plausible. (just discussing that most just pay and pay without evaluating if they have to)

There is nothing foolish if you can do it, prepare for something that odds are greatly in your favor will never happen. Honestly the vast majority of the public dies of some cause before they ever file a homeowners insurance claim.

Growing up on Long Island there were stretches of beautiful beach from homes in places like Fire Island Inlet, most all of them had to be bought with cash because no one would insure them and never would get a mortgage. The homes still there 50 years later and the values still through the roof. This is a poor example but an example of not everyone carries homeowners insurance. Certainly not people who plan and can afford the small risk compared to all the other risks of living.

BTW - I carry homeowners insurance but I do think out of the box and time will tell if I pay it until the day I die. Good for those that do not have too. I would be shocked if any famous musician, personality, sports figure, entertainer etc carries insurance on a home.

How Do Insurance Companies Make Money? Business Model Explained

Discover what the most important components of an insurance company business model are. These include risk pricing, investing and claims handling.

www.investopedia.com

 

[odie]

It’s edging up here in Western Canada due to forest fires. Insurance companies will not even issue new policies during the summer, when fires are raging. You don’t want be be in a postal code that has had evacuation warnings.

LEE might have impact on EASTERN Canada .