Insurance! Insurance! Sick of paying it!!!

[3timesoccermom]

Hubs and I are considering not renewing our wind storm policy that is due next week - it's $1770.

We started to figure out how much we pay for it all and were appalled!!!

We are very lucky that the bulk of our medical is paid through his job (and that includes vision and dental) although we do still contribute a few thousand bucks for medical on our own.

Then:

• homeowner's
• a separate flood policy for the house
• a separate windstorm policy for the house
• automotive insurance
• life insurance
• accidental death and dismemberment (these last 2 just for Hubs and me)

I just feel we are paying way too much and we need to stop paying for some of these but do we really want to gamble???

Yeah, and speaking of gambling, that's all insurance is, IMO, a legalized gamble and WE lose.

What do you think?

[dinade]

Our health insurance has cost us abou 600/mo for the last 13 years. I hate insurance. I don't see a way around it though. :(

[jamking75]

3timessoccermom--yep fully understand what u r saying. We paid $1,000 a year for many years for "flood insurance" because we are in a "flood zone". Well, we stopped paying for it becuz it was too expensive and we were never flooded. Not even in this year's horrible storms, nor was this house flooded in the great floods of 1972. Frankly, I don't think we are even in a flood zone and it is just a scare tactic to get us to buy insurance. I would take that $1770 (or even a 1/2 of it) and put it away in an emergency fund, just in case there is ever a problem. Then, if nothing does happen, you have kept your own money.
Yes, it is like legalized gambling.
BTW-I would look into what exactly your flood insurance covers---some only cover the hot water heater....not sure how that works in TX tho.....

[barclay13]

Insurance is out of control. I am also sick to death of it (pun intended!).

I don't think it's fair at all that healthy people have to pay SOOOO much for health insurance. My husband and I workout every single day. He has less than 9% body fat. I have about 17 % body fat. We are in perfect health. We eat very well!!

Why do we pay similar rates has people who eat McDonalds and can't walk up a flite of stairs?

Seems terribly unfair to me. Shouldn't we get rewarded for our behavior?

People who have accidents have to pay higher automobile insurance.

gug.

[qpnkwn1]

We pay $1500 a month for our health Insurance and then turn around and pay over $200 in prescription copays a month. Yep, insurance is waaaaaay out of control, but what are you to do?

[joshmamabear]

I agree that insurance is legalized gambling We have to have something bad happen to us for us to "win", the irony of life! I overheard a clip from bloomberg regarding flood insurance being mandatory in certain areas

If you live in Natomas flood insurance is now mandatory. Learn the facts here.

since it is a necessary "evil", I make sure we choose our providers, discuss thoroughly our policy and refuse any part that we don't really need to pay for. I stick with those that are approachable and easy to get hold of; if they treat me bad when everything's fine while they collect my premiums, I can just imagine how they treat me when the going gets rough?

as to the accidental death/dismemberment, we don't have a separate policy for that, we have the free $1000 policy offered by the bank (3 offered from different companies) for DH and me.

[Macaela25]

I agree with the PP who said to take the money spent paying for policies you don't think you need and save them. That way if something does happen, you pay OOP and don't worry about red tape and begging a company to take care of it.

It's a gamble too, but so is the insurance.

[3timesoccermom]

We are not in a flood zone either.

I am just looking to find out a little more about what other families feel is necessary and what isn't. Of course we'd be nervous to go without the homeowners, flood and wind but we've been paying homeowners for 25 years and have never made a single claim - starting to think even that should go except maybe something for fire.

If it hadn't been for Hurricane Ike coming through in September 2008 and leaving many homeowners (mostly in Galveston) with nothing but the property their home HAD been on and having both the flood insurers AND the wind storm insurers deny responsibility for the claim - both saying the other needed to pay - I wouldn't be nearly as cynical as I am about insurance but I just despise the whole freaking game.

Now how would that be?? You faithfully pay those policies for who knows how long, then when you need and expect them to come through they don't pay!!!

[Dengineer]

As far as insurance goes, we have auto insurance (full coverage), renter's insurance, life insurance, disability insurance on DH and health insurance with an FSA through DH's employer. We feel like we're paying a lot too but consider these to be necessary spending. We have never made a claim on any homeowner's/renter's policy and only a couple of times for car accidents many years ago.

When you buy insurance, it's done for peace of mind, not because it gives a great return. It's a way of transferring risk from you to someone else.

Accidental death and dismemberment is covered under life insurance. To quote Dave Ramsey, you're not double-dead if you die by accident so you don't need double insurance.

If you live in an area that floods or anywhere near an area that floods, or in an area where it could ever flood, you need flood insurance. We rent, and live on the side of a mountain so flooding is not a problem for us. But maps are pretty good regarding flood zones and if it floods in your area, you should have it.

Not sure about the wind policy. We used to live on the Gulf Coast a few miles in and we never had it.

[coupongrl]

I was going to drop my flood insurance because it was a lot and I felt what were the odds of something ever happening. But thankfully the local government redid the flood plains map and they rerated or something the area where I live and the price dropped to half. Now I think the fed government requires me to have it where I am in NY. But I was afraid to drop it because I figured as soon as I dropped it I would flood. However, now with all the crazy weather patterns I am keeping it. During Hurricane Irene I was evacuated because they thought we could flood, so I am paranoid now. Why dont you just see if you can lower your premiums with a higher deductible or with lower coverage amounts. Could you absorb some of the damage costs if possible which might lower the cost of the policy?