Suze Orman to Self Insure Condo($28,000.00 a year to insure)
- Thread starter jeff2
- Start date
Christ, she's in Florida! Ever since the 2022 condo collapse in Surfside, FL, which left nearly 100 dead, that state has passed laws to improve the structural integrity of condos. Additionally, many condo associations have capital funds that are severely underfunded. Couple that with the natural disasters and how insurance companies have either abandoned or prohibitively raised rates in that state, it's no wonder she's looking at self-insurance.
You need insurance to cover expenses that will cause you problems if they come up. Using insurance to pay for affordable hits or routine expenses is not very efficient.
Someone breaks in and steals my computer, I should be self financing that as I can afford to repair my door/window and replace the computer without being much of a problem. My house gets torn down by zombies or enraged Justin Beiber fans, I am financially fucked.
Oddly enough the wealthier you are, the less insurance you need. Should probably have insurance vs getting sued though double plus so in the US, double double plus so if you are rich.
Someone breaks in and steals my computer, I should be self financing that as I can afford to repair my door/window and replace the computer without being much of a problem. My house gets torn down by zombies or enraged Justin Beiber fans, I am financially fucked.
Oddly enough the wealthier you are, the less insurance you need. Should probably have insurance vs getting sued though double plus so in the US, double double plus so if you are rich.
Excellent take on insurance. Suze Orman is far too wealthy to be carrying insurance on property.
The $28,000 annual premium doesn't sound right to me though. A 2,100 square foot condo should be relatively inexpensive to rebuild (if that's what the owners want rather than pocket the insurance payout). Sometimes insurers try to get clients to insure values that include part of the land values. I'm guessing Suze Orman is too smart for that if she actually handles it herself. Is it possible the policy protects from structural issues arising from shore erosion? In that case, the land could become far less valuable.
Hey, I used to buy a good chunk of term life when wife was home with the kids.
As life moved on and wife got back to work, and house mortgage paid off then the need for said insurance faded and I bought less.
Then two years ago it got more expensive, as I expected it would, and I dropped it all together.
As life moved on and wife got back to work, and house mortgage paid off then the need for said insurance faded and I bought less.
Then two years ago it got more expensive, as I expected it would, and I dropped it all together.
