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Old 02-09-2017, 01:18 PM
 
Location: Near San Francisco, CA
184 posts, read 115,118 times
Reputation: 241

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Insure what you can't afford to lose.
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Old 02-09-2017, 01:58 PM
 
Location: Vermont
10,309 posts, read 11,227,747 times
Reputation: 14194
I agree with the rest. If you haven't shopped your insurance around in a while it sounds as though it's time to do that.


But still, the mortgage doesn't enter into it. What would you do if your house burned to the ground? As long as you own the house you'll need homeowner's insurance.
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Old 02-09-2017, 02:11 PM
 
Location: North Beach, MD on the Chesapeake
33,901 posts, read 42,143,850 times
Reputation: 43305
I agree with the keep your insurance crowd, but you but you​ wouldn't believe how many people in the OP's situation drop their insurance the day after the mortgage is paid off.

That includes flood insurance for people 1 foot above mean high tide. We had one guy who's wife dropped their insurance two weeks before a tropical storm rolled up the Bay and put five feet of water into the house.

That house got hit two more times before he raised it. But even then he screwed up by not being able to make a decision until after the FEMA grants to do so expired.

Other people drop their insurance and then get flooded out. Their story is that that didn't realize they were in a flood zone even though they had flood insurance for 30 years and we have Flood Zone signs everywhere in the area impacted.
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Old 02-09-2017, 02:36 PM
 
Location: SoCal
6,071 posts, read 9,533,605 times
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Doesn't homeowners insurance cover more than just your physical home? For example, if someone is injured on your property and you're found to be liable, doesn't it cover that person's resulting bills?
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Old 02-09-2017, 02:37 PM
 
Location: North Beach, MD on the Chesapeake
33,901 posts, read 42,143,850 times
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Quote:
Originally Posted by oddstray View Post
Doesn't homeowners insurance cover more than just your physical home? For example, if someone is injured on your property and you're found to be liable, doesn't it cover that person's resulting bills?
Yes.
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Old 02-09-2017, 03:01 PM
 
15,149 posts, read 19,767,371 times
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Quote:
Originally Posted by oddstray View Post
Doesn't homeowners insurance cover more than just your physical home? For example, if someone is injured on your property and you're found to be liable, doesn't it cover that person's resulting bills?

Yes, and for a small price you can buy an additional umbrella policy that will cover you if someone files a claim for more than your homeowner's policy covers. For example, I pay @ $100/year for a $1,000,000 umbrella policy issued by the company that has my homeowner's insurance.
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Old 02-09-2017, 03:45 PM
 
Location: Florida
4,366 posts, read 3,704,692 times
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If you can afford to rebuild the house without insurance you could drop the insurance. But if you can afford that you can not afford not to have liability insurance.
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Old 02-09-2017, 03:56 PM
 
13,923 posts, read 7,416,674 times
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Some of this depends on the value of the land relative to the structure. A $1 million lot on the beach with $100K worth of house on it? I'd only want liability insurance. Don't charge me huge money to insure the structure.

If I owned a teardown, I certainly wouldn't insure it. Otherwise, I'd take a hard look at high deductible insurance.
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Old 02-09-2017, 04:07 PM
 
Location: Florida -
8,767 posts, read 10,848,423 times
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Quote:
Originally Posted by tmbf57 View Post
LOL thank you for your replies, she's actually a very good accountant but I questioned her reasoning since we are definitely not part of the 1%. I will be calling around to find better rates and keep us insured. Thanks again.
Without knowing what your homeowner's insurance covers, it's difficult to automatically conclude you are paying too much. In South Florida, most people are already essentially pretty much self-insured when it comes to hurricanes (2-3.5-percent deductible per storm). -- Perhaps that is what your accountant was talking about(?)

Otherwise, a "good accountant" who gives poor financial advice - sounds like a contradiction. It couldn't hurt to ask other accountants if they concur with this advice.
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Old 02-09-2017, 04:13 PM
 
6,885 posts, read 7,286,872 times
Reputation: 9791
Sorry, I still stuck on the fact that your account told you to drop your homeowner's insurance.
The person didn't say shop for a better rate, or get a higher deductible -- they suggested dropping it all together. IF this person does your taxes they know your financial situation, and know you can't self insure for all the kinds of loses covered by homeowner's insurance covers.

One how dies an educated professional that deal with any kind of personal finances -- an has some what of a fiduciary responsibility -- not know that whether your house is paid off has nothing to do with the wisdom of this kind of coverage.
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