Self Insurance anyone??

[callbay]

Any members that have dropped the insurance on their house, vehicles with still a lot of value, or other things when they have them payed off. Of course one would keep the liability insurance.

It's just that my homeowners has gotten so expensive I could buy another car with the money I would save from dropping the insurance.

What are your thoughts?

Thanks for your input.

 

[SubieRubyRoo]

Buy a crazy umbrella policy and prepare for the worst, or you need something like a personal $100k bond on file with the state.

Question is, what about your home causes it to be so expensive? Replacement cost, flood zone, etc etc?

 

[DuckRyder]

Can you afford to write a check, on the spot to replace your home? Your cars?

 

[EA82]

At our old house when citizens insurance dropped us because they were forced to by the state, our premium jumped from $800 a year to the cheapest my broker could find was $4000.
That was a reason for us to pay off the 1350 Sq ft house and drop the insurance, $4000 a year for that house was insane....not to mention the high deductibles and the run arounds in case you file a claim.
Now our new house is around 2000 sq ft and it's not paid off but we pay something around $1500 a year which is much better compared to the old one and probably gonna keep the insurance at this price even if we pay the house off just for peace of mind.
Ive had conversations with numerous people about this subject and to my surprise many are following the "self insurance" path because of the high premiums and lousy coverages, the down side to that is the situation of a total loss in case of fire.
When it comes to car insurance i'd rather pay a little more and be covered because the risk of being sued is much higher in my opinion.

 

[billt460]

Originally Posted by callbay
.....It's just that my homeowners has gotten so expensive I could buy another car with the money I would save from dropping the insurance.

Why is your homeowners so expensive?

 

[atikovi]

Originally Posted by callbay
Of course one would keep the liability insurance.


I would do just the opposite. What's the cost to replace if it burns down vs. the unlikely chance someone hurts themselves on your property and sues for a few thou?

 

[talest]

Liability only, legal minimum only don't let anything happen that causes damage. Most of the time, you can avoid the problems. Homeowners, that's perhaps different.

Some people like paying a lot, having a lot, of insurance .

 

[Chris142]

Originally Posted by billt460
Originally Posted by callbay
.....It's just that my homeowners has gotten so expensive I could buy another car with the money I would save from dropping the insurance.

Why is your homeowners so expensive?

I live in a fire prone area. We currently do not have insurance because we can't find a company that will insure where we live.

 

[atikovi]

Originally Posted by Chris142
I live in a fire prone area. We currently do not have insurance because we can't find a company that will insure where we live.

Doesn't that drop property values significantly? As well as sales? Nobody will be able to get a mortgage.

 

[MasterSolenoid]

House - Full replacement coverage (2019 $423.)

Auto - I dropped the Comprehensive coverage and premium went down 25% / that was 8 years ago.
Even if I bought a 'new' vehicle, I think I'd skip the comprehensive and take more responsibility for my actions / self insure.
(2019 $202. / 6 Months)

Last year, I upped my Liability coverages and bought an Umbrella Policy / One million for $193.

Mostly I want to insure against the idiots out there.
I sleep good at night with my decisions.

 

[Kestas]

I dropped it from my condo in Florida. If a hurricane comes in and does damage, it is no big deal because the unit needs a complete update. The association is responsible for the bones and roof of the structure.

Insurance is for when you can't afford the loss. We can afford it.

 

[NormanBuntz]

Originally Posted by Kestas
I dropped it from my condo in Florida. If a hurricane comes in and does damage, it is no big deal because the unit needs a complete update. The association is responsible for the bones and roof of the structure.

Insurance is for when you can't afford the loss. We can afford it.


Or when you live in a disaster-prone area (earthquakes, forest fires, hurricanes, tornadoes, etc.) or of course when it's required by the state where you live to register your vehicle.

 

[old1]

Here in tornado country, I keep my house fully insured, but my cars, that is another story. I generally just cary liability, and part of the year I add comprehensive. I have had several brand new cars the last 20 or so years, and have never had collision coverage.