Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
People buy insurance because they cannot bear the risk alone. Only a relatively small percentage of policyholders will incur a large claim in a given year, however, none of them could afford to bear that claim alone. Unfortunately I cannot tell when you will have a claim and advise you to buy a policy because you will be having a claim soon. Actually most people buy a homeowner’s policy because their lender requires it, however, it is a very good deal, particularly if you do have that major claim.
That is a great question! A lot of people have a hard time with the concept of insurance. I'm young, nothing will happen to me! Or I'm a good driver, why do I need insurance? But inevitably things do happen. You can be the best driver ever, but that doesn't mean the teenager texting in the car behind you is; or that something can go wrong, and you're laid up in the hospital. Homeowners is the same way. No one thinks that things will go wrong with their house, why would I want it? Insurance is there to protect you when things do go wrong. You would not think the insurance was a waste of money when you got the check to replace your belongings, or the one that allows you to pay for the hotel rooms that you are forced into when your home is damaged. Insurance is only a waste of money when you drastically undervalue it. Please consider it as protection, and not a waste. Thanks for asking!
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
There is one insurance policy that is guaranteed to pay a benefit and that is Life Insurance.
Unless you have a mortgage that will require you to have Homeowners insurance, then if you have enough liquid resources (cash) to completely rebuild you home in the event it is destroyed then you probably don't need insurance. If you have enough resources available to pay a lawsuit settlement, then you probably don't need insurance. If you can't answer yes to both of those questions, then no, Homeowners Insurance is not a waste of money.
.JPG){kind=avatar}
Unless you have a mortgage that will require you to have Homeowners insurance, then if you have enough liquid resources (cash) to completely rebuild you home in the event it is destroyed then you probably don't need insurance. If you have enough resources available to pay a lawsuit settlement, then you probably don't need insurance. If you can't answer yes to both of those questions, then no, Homeowners Insurance is not a waste of money.