Suzy Orman Ditches HO Insurance (don't do this at home)

[athena53]

Seems to me that with insurance, you are betting you will need it (and hoping you don't) and the insurance company is betting you won't need it.

Yes, but it's also a pooling of risks. The losses of a large group of people are easier to predict (but still a challenge with many variables involved) than the loss (or lack thereof) of one insured.

I make my self-insurance decisions based on likely worst case. Do I want to fund replacement of my $400K house and its contents if a tornado blows it away? No. I've dropped physical damage coverage as my car got old. If I need long-term care, can I fund it? Yes. Is dental insurance worth it to me? No.

Insurance is priced on a "cost-plus" basis- expected losses plus overhead- so there's a genuine saving if you can afford the potential losses.

 

[RetMD21]

Homeowners Insurance: You Can't Afford to Skip It by Suze Orman ​

Homeowners Insurance: You Can't Afford to Skip It

 

[brett]

We no longer carry life insurance. There is no appreciable financial risk to either of us.

The only trip cancelation insurance we carry is via our premium credit card.

We have higher deductables on our home and auto insurances. Lower premiums and no appreciable financial risk for us.

Last time we purchased a six month insurance policy for out of country medical/evac we went with a 5K deductable because it cut the premium by 30 percent. We were not concerned with $5K expense...it was the 100K's and expensive evac that we considered a financial risk. At that time the insurer also had a $10K deductable however the decrease in premium from $5k deductable did not compute for us.

Amazing as it may sound, we have somehow managed to muddle through life, retire early, be financially secure w/ a mid 7 figure equity balance, etc etc, without EVER listening to or reading Suzy Orman (well I did once for 10 minutes..that was enough).

We are not particularly smart. I put it down to common sense, avoiding lifestyle inflation, never incurring consumer debt, investing carefully........... and being a bit of a market contrarian. Nothing particularly earth shattering.

Short arms, deep pockets. We buy on value, not price or status.

 

[RetMD21]

Here's the original article that the Yahoo article was based on. IDK if Suze is right about the role of climate change: Suze Orman: Climate change will stop Americans wanting to own homes

 

[Gremlin]

Here's the original article that the Yahoo article was based on. IDK if Suze is right about the role of climate change: Suze Orman: Climate change will stop Americans wanting to own homes

This makes no sense to me. Whether as an owner or a renter, you’re going to have to pay for higher insurance costs. Unless you choose to go without insurance as a home owner . . .

 

[Dash man]

I found her building (easily googled) and yeah...not the kind of place you'd expect a super multi-millionaire to have. Looks like she bought it for just under a mil in 2014. She described it as "totally normal", and for the Hillsboro/Pompano Beach area, she's right.

That’s hilarious! She’s just down the road from our condo. I can probably see her building from ours since there are mostly homes (mansions) between us. We’re to the north of her and there’s only one smaller condo building between us.
Our condo is only 1200 sq ft and our combined HO and Windstorm policies are about $3,500.

 

[brett]

I am at a loss to understand why she appears so popular.

She reminds me of some of the televangelists on late night tv. Designed to put to sleep those who have trouble sleeping (after the credit card has been rec'd).

 

[Badger]

A number of years ago the hurricane portion (Wind and Hail) of my HO policy was parted out to another company. I can't remember who but it may have been Citizens. That lasted a while until they stopped and the insurance was handed over to Weston. Then a few years (+/-) ago they stopped and it went back to Citizens. They increased the premiums by 30% for a bit less coverage.
Located at the beach in Fl our modest concrete block house has survived everything weather has thrown at it since 1955. I feel like I am being taken advantage.
Since buying the house in 1983 the value has gone up because of location and just the lot alone is valued at 16X what I paid.
We still carry HO with USAA and Flood Ins. but I decided not to insure for Hurricane (Wind and Hail) since the only thing of value to me are those contents with sentimental value that insurance would be useless for. If it blows away in a few years it might just be the time to move to assisted living. By then the sale of the lot would most likely pay for 10 yrs for the two of us assuming we last that long.