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Property Insurance for someone with a recent criminal record ?
Don't take out insurance at what will obviously be a high price given your situation now its on record. Someone advised me when I was younger not to take out any insurance, instead put the value of it away in a savings account and don't touch it - this is good advice (except maybe if you live in an earthquake or flooding area). It doesn' take long to gather a decent sum. Banks like you because you can show you can save. Due to my collection of speeding offences in fast cars (with zero alcohol) I don't have car insurance because they still charge the full price even when you own multiple vehicles but can only drive one at time, the insurance cost is exorbitant and not worth it to me my money is better in the bank.
I still don't have insurance on the house I live in, farm insurance, nor on any of the rental properties. Don't let trees grow too tall/heavy within falling zone of any buildings. From the sounds of this osaki? case im better off not having insurance anyway because it seems that is the only way to get tennants to pay for any damage is if you are not insured (hope I understood that bit right). Also Dobermans make great guard dogs they are 100% effective and are much cheaper than insurance.
Most people would ultimately spend the 'insurance' money they saved.
Banks want to see their interest insured when they provide a mortgage - anyone got around this?
Hi Wayne,
I agree it will only work for some people as the temptation to spend it can be great. When I first take out a mortgage you have to suppy them with proof. The next year I stop paying it, it took 5 years for the bank to ask me about insurance again, I said yes I am currently looking at prices and that I give would give the proof when I decided who. (I didn't give them any proof) Years later again by the time they asked me about it (usually triggered when you start asking about refinancing etc) I still didn't have any insurance, but by the time they asked I had more money in the bank that what the remainder of the mortgage was worth so they didn't push it any further. That was that.
At the end of day each has to do your own risk assessment and for those with mortgages its a wait and see approach as to how much they chase you for it.
I might have to eat my own words however, as i haven't taken out a new mortgage since the Chch earthquake so no doubt things will be different now.
Not often I find myself arguing for insurance, but the advice above is really dangerous.
Self insuring (the practice of saving your money to pay for unexpected events instead of paying insurance premiums) is an excellent idea, if you aren't tempted to spend the money.
But even if you can save and not spend, the first few years are extremely dangerous. A car crash or earthquake/lightning strike can happen at any time, what if it happens in the first six months of ownership, before your savings are anywhere near enough to repair or replace the item?
When you have maybe $10k in the bank you can probably afford not to insure your own car, but what if you hit a Lamborghini? Third party is still a must.
When you have $100k in the bank you can probably afford not to insure your car third party - though I still would anyway. But your house can still burn down in an electrical fire, so surely you'd still insure that. Especially if it's got a mortgage on it.
When you have $10M? Sure, you can take the hit. Go without the insurance. But don't be recommending that to people who are still saving for six figures.
I agree it will only work for some people as the temptation to spend it can be great. When I first take out a mortgage you have to suppy them with proof. The next year I stop paying it, it took 5 years for the bank to ask me about insurance again,
I would think you would be in breach of your mortgage contract then.
Anyone who owns a property and thinks it's a good idea to not have insurance is a madman. We have spent bucket loads on insuring cars, life, income and dozens of houses... never thought it a waste of money. Around 9am Thursday we had a total loss fire at one of our houses - after all this time paying all this insurance in one event/claim we will receive a payout of more money than we have ever paid in insurance cumulative.
insurance is a cost of doing business, we will come out of this unscathed because of having the insurance. I can't imagine how I'd be feeling 48hrs after a total loss fire if I had chosen not to pay for insurance
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