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I was thinking about how much of our income goes towards insurance NOT including health insurance. I knew it was a decent amount, but never put it in the context of an ER. In our case, we spend:
$500 for home insurance
$400 for earthquake
$1200 for car insurance
$250 for umbrella
$250 for life insurance
for a grand total of $2600. I don't think any of these values are extraordinary, especially considering that some Floridians probably pay more than this for their home insurance alone.
This works out be about 1.75 - 2% of our income, which is not unexpected. However, once we FIRE, we expect our 4% withdrawal to be around be between 65k and 80k/year, meaning that it'll amount to 3.25 - 4% of our income. And this isn't a cost that is going down or ever going to disappear (well, maybe the life insurance and some of the car insurance with downsizing).
What are everyone insurances costs? A breakdown would be nice and also thoughts on coping with insurance costs during ER besides just increasing the ER pile.
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