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[OBrenda]

So Glad to hear from you Darren!

 
Brenda

[indianabob]

Hi Brenda,

There is more than one way to think of casualty insurance.
Up here in Northern Indiana we have Amish communities that may choose to self-insure to some extent.

When an Amish home is damaged by fire or wind the local community gathers to rebuild it.  Some members provide the materials, others provide lots of good food and about a hundred men, women and children provide the labor to raise up a new home in about a week.  I think that that is the kind of insurance that God respects.

On the other hand there is commercial insurance which I will explain briefly for my own home.

We have a 100 year old house of about 3000 square feet, partly two story with a ten year old three car garage, located in a small town with a volunteer fire department.  We presently have $230,000.00 in coverage on the dwelling and it covers everything except flood which would be extra.  (we are 700 ft above sea level) The policy would pay an additional $115,000.00 for personal property or contents and an additional $46,000.00 for the garage and $100,000.00 personal liability in case of a law suit.  Our annual premium is $753.00 or about $7,530.00 for ten years.

Like you we have not had any damage or reported any claims, but of course the Insurance Company has paid claims for other people they insure.  So, the premiums we paid in have been used to pay claims, to pay the insurance agent 15% and to manage the company.  These expenses are on public record and any citizen may examine the company's books in the office of the Indiana Insurance Commissioner.

As far as the bank is concerned; the bank has on deposit funds of our neighbors that are loaned out to us and others with the home or other property held to guarantee the repayment of the loan.  If there were no insurance and the house burned down we could not repay the loan.  Even if we saved the premiums at 3% interest for the ten years we would have only about $10,000.00 to try to rebuild a $230,000.00 house and we would still owe the loan amount, so that wouldn't work out very well.

Insurance companies certainly do make a good living for their stock holders and agents, but they usually spend 70% of the premiums each year on legitimate claims, so we just need to be careful which company we select to provide the protection.

If you have been paying $3,000.00 per year on house insurance then I suppose you have a very expensive home or an unusually high risk factor or you need to shop around for a better deal on insurance.

Let me know if you have any comments or questions.

Bob

Hi IndianaBob,

Right now in my life I'm kind of sour on Insurance.  Unfortunately when you have a mortgage you are required by law to have these things.  The home insurance company I have had for 10 years has decided not to renew in November.  If I do the math, since we never put a claim in, we flushed about $30k in their pockets.  If we put that money in a savings account, we could pay for damages ourselves.

I think insurance is fleecing this country.  People are trusting in them and Government to bail them out of everything.  I would like to go back to trusting in God first, then to secure savings & living within my means.  I would welcome the ability to not have insurance, but our laws force us to! 

I want to owe no man.....!
Brenda

Disaster's can happen anywhere, like Darren said:
Thanks gmik, no matter where one lives we are in danger from mother nature.  Hurricanes in the south east, tarnados in the heartland and earthquake in-the west and snow storm and ice storms in the north. So it doesn't matter where you live. I tell you amazed me in the aftermath of Katrina I was reading on line here people were blaming us for living in a soup bowl(*New Orleans) That it was our fault.

I understand Darren being upset...I think it's a bit cold hearted to blame the victims, when they are required to pay for a policy, and then they get thrown under the bus to find themselves in need.

[OBrenda]

Hi Bob,

Are you in insurance

When I speak of being being sour on insurance, I'm also speaking Ideally what I would like to have been able to do.  I'm certainly not preaching to anyone.  I have no doubt it has been a blessing to many.

Ideally, I would much rather conduct myself much the same as the Amish.  But this wisdom has only hit me recently.  It would have been ideal to have been able to purchase a house for cash, and bank money spent for insurance.  Would I have saved that money 10 years ago, certainly not.

IOur cost of insurance here is reflective of it being in an area prone to hurricanes.  I believe that accounts for yours being $753.00 and mine $3,000.00 a year.  No Basement, built on Slab, one Floor, a few steps on either side and your in your neighbors property.

I think Joe answer well about how the insurance works down here and the building codes.  When Hurricane Charlie hit I think it was a Cat 3 and Thanks to God all we lost was a few trees.  My husband and I are thinking of moving eventually hows the weather in your part of the woods?
  
Brenda

[winner08]

Hello I am back in my house with power!! Like Ray says thank God for everything even the smallest of things as in, electric and water (in door plumbing). my bed and pillow, AC and all the other things I take for granted. OH, my computer so I can talk to you good people. I notice you guys are talking about insurance. We had one hell of a time trying to get our money from those guys after Katrina. Many of us paid many yrs into our policies yet when time came to pay up many gave us (my people down here). a hard time. Anyways, I am glade to be in my home with AC and once again participating in good conversation.

                                     Darren