Anonymous wrote:We don’t have homeowners insurance. It is priced based on average risk, plus a profit margin for the company. I am much more careful than the average person - always clean the dryer lint etc - so my house is much less likely to be damaged than the average person’s house. So it would be a net negative for me to purchase i.

Wow, you're a special kind of stupid, aren't you?

Anonymous wrote:We don’t have homeowners insurance. It is priced based on average risk, plus a profit margin for the company. I am much more careful than the average person - always clean the dryer lint etc - so my house is much less likely to be damaged than the average person’s house. So it would be a net negative for me to purchase i.

I’m a really careful driver so I guess I should drop my auto insurance…

Anonymous wrote:We don’t have homeowners insurance. It is priced based on average risk, plus a profit margin for the company. I am much more careful than the average person - always clean the dryer lint etc - so my house is much less likely to be damaged than the average person’s house. So it would be a net negative for me to purchase i.

If this is your analysis, then you should get homeowners insurance asap. You have no idea what you are talking about.

You can't have umbrella insurance without homeowners, and I want umbrella to have access to insurance company lawyers if someone ever sues me for some fall or other accident. That is my bigger fear than my house burning down.

Anonymous wrote:I know quite a few people who self insure. They are all wealthy and live in multi-million dollar homes. I guess, they’ll be fine losing the money.

Seems fine for the truly wealthy, but for the average middle class or UMC even, it doesn’t seem worth the risk to me.

I know quite a few people who self insure. They are all wealthy and live in multi-million dollar homes. I guess, they’ll be fine losing the money.

If someone doesn’t have it, it’s because they dropped it to try to save money. They own the house outright, but they’re stretched too thin some other way. So they take on the risk to save the premium.

Or, they’re dysfunctional in some other way. They’re not budgeting, so the annual insurance bill feels too big and they skip it, and then never come back to it.

Anonymous wrote:We don’t have homeowners insurance. It is priced based on average risk, plus a profit margin for the company. I am much more careful than the average person - always clean the dryer lint etc - so my house is much less likely to be damaged than the average person’s house. So it would be a net negative for me to purchase i.

Thanks for the laugh. "I am much more careful than the average person." Insurance is about the unknowns. The things out of your hands. Like a plane falling out of the sky on your house. You're welcome to bet on statistical averages of things that could happen but please don't think you are in control.

Anonymous wrote:We don’t have homeowners insurance. It is priced based on average risk, plus a profit margin for the company. I am much more careful than the average person - always clean the dryer lint etc - so my house is much less likely to be damaged than the average person’s house. So it would be a net negative for me to purchase i.

Yup as long as you keep up that dryer lint trap you are fine. We have had 3 electrical fires in our neighborhood.

In my circle of friends, I know one who's home burned down in an electrical fire, one who's home burned down due to a bunch of 10 year olds playing with matches, 2 who had trees fall on their home, and one who's neighbor's tree fell on their home (that's still on you, not the neighbor). I guess the moral is, do not be friends with me. jk

All had homeowners insurance, and all rebuilt. The one who's neighbor 10 year olds burned down their house moved after rebuilding

Anonymous wrote:We don’t have homeowners insurance. It is priced based on average risk, plus a profit margin for the company. I am much more careful than the average person - always clean the dryer lint etc - so my house is much less likely to be damaged than the average person’s house. So it would be a net negative for me to purchase i.

I've lived in my house for ~23 years and never made a homeowners insurance claim. I still have a mortgage, so I've been insured with the same company the whole time. In recent years, they have been increasing my premium by 100-300 a year. This, in turn, has increased my monthly mortgage bill. I switched insurers this month and will pay $600 a year less. I have fantasized about the day I might be able to not pay home insurance, although, last summer, 3 houses a few streets over burned down due to an electrical fire that started at one of their outdoor hvac fans. Homeowners insurance is a rip off...until it's not.

We don’t have homeowners insurance. It is priced based on average risk, plus a profit margin for the company. I am much more careful than the average person - always clean the dryer lint etc - so my house is much less likely to be damaged than the average person’s house. So it would be a net negative for me to purchase i.

I know a doctor who was forced to retire early due to cancer. Her house burned downed in the Palisades fire. She did not have fire insurance because she was paying medical bills.

My sister does not have homeowners insurance. It’s as bad as not having health insurance The house could burn to the ground and they will have nothing. She’s made bad financial decisions her whole life and this house is her biggest asset. I don’t get it.

Tonight I learned that a family friend doesn’t have homeowners insurance. They own their home outright so it’s not required.
This is the first time someone know irl has disclosed this. I’m shocked. It seems like such a risky way to live.
I’m curious if anyone on here knows someone like this, or is this way themselves.