Insurance is like the complete inverse of gambling (not insuring may actually be closer to gambling). When one gambles the expected outcome is negative but the hoped for outcome is positive - when one buys insurance the expected outcome is negative and the hoped for outcome is negative. Nobody buys insurance because they hope they have enough claims to cover their costs in it.On the one hand, buying insurance is like gambling when you know the odds are stacked against you.Not sure if I should be bothering to get home insurance anymore and would be interested to know peoples thoughts. Here are the specifics:
Home owned outright, around 15% of net worth. 1960s brick ranch In good condition. Value $750k.
Home in very good location in Atlanta with tear downs everywhere. Land without home is worth within 10% of value of land and home.
Most insurance is coming in around $2500 a year with high deductibles. I travel half the year anyway and small print seems to indicate no coverage anyway once home empty over 30 days.
And of course you wouldn't invest like that, if you did so you wouldn't be investing. Investing comes with positive expected outcomes... that said, you may very well use part of your portfolio to insure your investments not working out (as various hedging strategies are designed to do).
Statistics: Posted by avalpert1 — Mon Aug 26, 2024 7:21 pm — Replies 46 — Views 3768