I paid cash for my house 6 years ago. Was going to buy insurance but they wanted to UP charge me because I didn’t have insurance in the apt I lived in. (Which didn’t make sense because I was worth far more than my belongings)
So, Ive went without. Saved roughly $3200-3800 over the years. But, my hot water heater went out and ruined my foyer wood floor.
Haven’t bothered to replace it. I figure I will have it tiled and my tile man said it would be best to do it AFTER I put new carpet down.
And Ive put off putting new carpet down because my stocks went down so much. (Up some, but still down from the peak)
Just curious how many others go without ?
Am I crazy ?
I figure its a good wager for me. If it burns down, I will just have to accept the loss and buy another. (Lost more in the market)
I figure my house is worth somewhere between $75-95k.
What are the odds that someone walks on my property withOUT permission, hurts themselves, sues me AND WINS ?
Isnt that about as small as my house burning down ?
Id say theres less than a 2% chance of either happening so the expected value of $600+ per year for 25 years into the future has to be greater than the potential loss multipled by the chance of that happening.
I realize that everyone cannot do it.
But not everyone worth what I am lives in such a modest house.
Deth,
I DID pay cash for the house. And I have saved over $3000 over the last 6 years. The foyer floor would have been under my $1000 deductable (If I would have bought insurance) so it wouldnt have been covered anyway.
And if the house burned down, I wouldnt HAVE to rebuild. I could just buy another house with the cash I have in savings. (Or stocks)
Sounds like you just cant imagine someone living below their means.
Yes, I could live in a $400,000 house.
In that case, I would HAVE to have insurance because a $400k loss would be much more bothersome than a $75-100k loss.