Homeowner's insurance (rant)

[Baz]

Originally Posted by look 171

how would you deal with the slip and fall or the mailman who twist an ankle?

Our mail lady twisted her ankle at the neighbors and was limping for al bit. Her boss filed the lawsuit for her suing my neighbor. She tole me something about covering their ass? What BS?

I should also say Liability insurance is also an option, which would cover stuff like that (non-structural) - I may look into that down the road.

[Tobra]

Originally Posted by look 171

how would you deal with the slip and fall or the mailman who twist an ankle?

Our mail lady twisted her ankle at the neighbors and was limping for al bit. Her boss filed the lawsuit for her suing my neighbor. She tole me something about covering their ass? What BS?

The post office does not carry workman's comp insurance?

[look 171]

Originally Posted by Tobra

The post office does not carry workman's comp insurance?

I am not sure? According to her, thats what managers are told to do when an injury claim is made. Doesn't matter if its dog bite, and all that good stuff.

[GH85Carrera]

Our house has been paid for for a while. We don't HAVE to have insurance. I don't think it is logical to not have insurance. Just a couple of years ago a hail storm came through and totaled the roof and gutters. It cost 18 grand to fix. We put on a impact resistant shingle and ridge vents. My insurance premium wend DOWN over a grand per year because of the new roof.

That roof replacement was many years of premiums. We don't have earthquake insurance or flood insurance. Floods are very unlikely and a damaging earthquake is even more unlikely.

[Baz]

It's all about risk, in my opinion.

Part of that should be based on specifics.

Do you have the financial ability to fund repairs, if need be - that otherwise insurance would cover?

How stout is your structure....and what type of potential weather issues do you face in your area?

Do you have resources that the average homeowner may not - such as access to friends in the trades (electricians, plumbers, carpenters, etc.) who could help, should the need arise...for less $ than they would normally charge...and perhaps with more personal attention as well?

I also would have to factor in how much the premium is. I went back and double-checked and I'm paying about $2K per year. Multiply that times the 17 years at this location and you have $34K....that in theory could have been put into an emergency fund (cookie jar) - and used for structural upgrades or repairs as needed.

Part of the decision process boils down to just calculations.

Everyone is in a different boat and thus should ultimately make their decision based solely on their circumstances.

[GH85Carrera]

No doubt 34K could go a long way BUT,

One fire or hurricane for you and you could loose the entire house, all your personal belongings and vehicles. I have lived in tornado alley for 36 years and only seen one tornado in this area and it was just a little wimpy F2. For sure a F5 could make my house disappear and all that is left is a concrete foundation. The odds are very very very low, but I am not willing to take that bet.

[porsche4life]

I'm with glen. 34k would be a nice chunk of change, but it won't build you a new house of that one got erased from existence. And what of something happens in year two when you've only saved up 4k? Well... You're screwed.

[Baz]

I respect what you both are saying.

Everyone should make a decision based on their own circumstances.

But one size does not fit all.

[gprsh924]

Can you afford to pay cash for the repairs/replacement of the item that you are considering not having insurance on? If not, then you need insurance.

[David]

I'm paying Farmers $3900 a year for my little piece of crap house in Houston! I also have 4 cars and an umbrella policy with them so my annual insurance bill is more than my mortgage or that expensive German car payment I have!

They said if I replace my 15 yo roof it'll go down about $1k.

I've trying changing companies but none of the big guys are writing policies where I live.

I'm not going to drop insurance when the house is paid off but I need to do something.

[Bamberg96]

Does anyone know what margins the insurance companies make? Like Baz I live in Florida in a small two bedroom CBS home. It has the original no leak 50 year old white concrete tile roof with a good 200 amp GE panel. I pay about $1400 for liability and an extra $1,600 for windstorm as I am east of I-95. I did have the 4-point inspection at my cost to continue my liability insurance and passed with flying colors.

In a couple of years the house is paid and I will definitely drop the windstorm extortion. You have to evaluate the risk, I removed the large tree, used an elastomeric roof paint rated to 150mph, replaced windows and the garage door to hurricane standards. The houses in my neighborhood are so well built that when my neighbor remodeled, he simply took a pressure washer to the interior walls. Worst case scenario I lose my roof and some doors. The walls and foundation will stand and the land won’t blow away, yet I have to insure the full value of the house with a huge deductible. In 20 years there have been no claims. After the last large storm with zero damage about 8 years ago I was cherry picked and put into a company called Florida Pennn at 3X my prior premium with no other options. These rapists kept me for 2 years until I was dumped into a state program that bought it down about a third. Pick and choose the insurance needed but for people like Baz and myself windstorm makes no economic sense. With the deductible you be lucky to get any of the $15,000 cost of a new roof back. I do not have expensive furniture, I do not own expensive artwork, just a couple of TV’s and my cars have their own insurance.

[74-911]

Originally Posted by David

I'm paying Farmers $3900 a year for my little piece of crap house in Houston! I also have 4 cars and an umbrella policy with them so my annual insurance bill is more than my mortgage or that expensive German car payment I have!

They said if I replace my 15 yo roof it'll go down about $1k.

I've trying changing companies but none of the big guys are writing policies where I live.

I'm not going to drop insurance when the house is paid off but I need to do something.

I know exactly what you mean (the premium for the House, 3 cars and an umbrella is ridiculous). TX has the highest homeowners rates in the US and along the coastal areas is the highest of all. And very little if anything you can do about it.