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View Diary: According to my home insurance plan (43 comments)

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  •  Building materials continue to skyrocket (1+ / 0-)
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    Villanova Rhodes

    In cost year after year. Ask anyone who shops at Home Depot, Lowes, or their local hardware or lumber store.

    Once Asia started to buy American and Canadian timber, steel,  and concrete products? Jeez, it's crazy how fast prices went up.

    Replacing you home has NOTHING to do with its resale value, unless you intend to demo it (which you need to pay for, and is not cheap) and move into another home. Yes, if you buy a "replacement" home that is very similar in kind and quality, your insurance might in fact pay for that instead of rebuilding your old home, but you are only insuring the structure(s), not the land. It's an option.  It's a big hassle, but it IS an option.

    Most people don't want to leave their neighborhood, their neighbors, deal with all of the other issues of moving -- and there is that pesky issue of having to sell your land.  

    I review my coverages with my insurance agent every year, and I often ask for an increase in coverage because their standard inflation increase does not match the construction materials inflation rate. I chat with friends in the various trades. Do you know what copper runs these days?

    Finally, since 1985, I've paid about $45k in the insurances I named above. The longer I've been insured with this company, the deeper the discounts. Multiline, claims free, +20 years and other discounts add up to almost $1000 per year.  

    Now, I can't replace my home for $45k. I could replace my kitchen for that much, as long as I don't burn the whole darn thing off.  I certainly can't withstand a lawsuit if a nice Avon Lady or canvasser tripped coming up my stairs and seriously hurt herself.

    I'm extremely careful and take pains to ensure we never have to put in a claim (which includes carefully considering where we buy our home, how it's sited, having a  full monitored alarm system, unplugging small appliances when we're not using them, fully training my dogs, always having a clear and safe front porch, etc) and we have been extraordinarily blessed.

    But I don't begrudge the money I pay for insurance either. My home, car, and life insurance is protection which I have 24 hours of the day.

    My health insurance? Eh, as Villanova Rhodes said, that's iffier.

    © grover

    So if you get hit by a bus tonight, would you be satisfied with how you spent today, your last day on earth? Live like tomorrow is never guaranteed, because it's not. -- Me.

    by grover on Wed Dec 26, 2012 at 10:57:50 AM PST

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