Ahhhhrrr the bills keep comin

[Aaron Sice]

over insuring by $700k is just plain stupid.

i over-insure HOUSE ONLY by about 20% to account for inflation and construction price rises.

it's CYA policy.

 

[steveadl]

over insuring by $700k is just plain stupid.

Yup! Plenty of numpties out there. They must expect it to be like a lottery win if it happens.

I do similar to you BC, replacement building costs and add an extra 10-20% for cost over runs and things you don't think about like Wylie mentioned.

 

[Sheryn]

A friend of ours doesn't insure anything - he runs the risk of self insurance!

Seriously though...he is seriously rich!

• 500K boat in marina
• Winebargo & new shed to store in
• New campertrailer
• Beachfront rental property
• IP rentals
• Commercial rentals
• Great cashflow business on best corner in town
  At least 6 cars in his shed + ski boat. Actually it is more like 8 cars in his shed.

20 years ago he nearly went bankrupt when he had a transport company.

We are lucky he is generous and loves people to use his toys.

About 2 years ago he ran up the back of a car when driving someone else's car. He struck a deal with the owner of the car he ran into and brought the car he ran into for cash.

Regards
Sheryn

 

[travelbug]

she does other things to when she comes over aswell sometimes. + it gives her something to do throughout the day. (shes 70 and retired).

Like your washing/ironing???

What a good son, keeping your mum busy like that.

 

[Strannik]

A friend of ours doesn't insure anything - he runs the risk of self insurance!

that's what a lot of rich people do

 

[DCI]

Thanks all for your stories,
Seems like we all get stung with insurance cost.
It's the cost of doing business..yeah I guess..... or business doing us...?
Anyway I was lucky enough to have my new car hailed on in a storm earlier in the year and thought okay it's fine I'm insured.
Okay so my excess was $500 bucks so I rang a few repairers myself and a few were quoting the same as my excess amount. The funny thing is the insurer quote was four times that amount. So I start to wander is my insurer really just charging me what it is costing them anyway for cost as they would surely have greater bargaining power amongst panel beaters, might even make a few bucks from me as well....gee..
Another instance I dropped about 3k of camera gear..camera and flash unit.
All insured for 5k.. guess what they gave me.. 1k and said camera was not covered as it fell outside the front door and flash fell inside the front door boundary. So offered me a pity payout for being a loyal customer.to put towards a new flash unit only..what the....
Anyway yes insurance is the cost of peace of mind but beware the fine print/scapegoat clauses cause they get ya every time.
See ya

 

[Nathan]

Like your washing/ironing???

What a good son, keeping your mum busy like that.

LoL nah she doesnt do it now I miss those days... I wash it and my G/F feels sorry for my state of housework and helps with the ironing

 

[evand]

The rich know what is a scam and what isn't. That's why they are rich i suppose.

I'm not rich (whats the definition of rich?) but i'm doing ok and I hardly insure anything. Have building & contents insurance on my house, 3rd party on my car, none for my bike.

Of course, landlord insurance for IP's, that's about it. As my insurance broker mate has said to me, its mostly a scam.

Beside most people being way over insured, they take (and increase) your premium so readily but when its time to make a claim, the first thing they do is look for ways to get out of it or reduce your claim.

The amount i have saved in not taking unnecessary insurance (over insuring) over say 25 years would be mind boggling.

that's what a lot of rich people do

 

[wylie]

I hear what you say about over-insuring. We have cover on our lives to ensure that the debts are nearly covered (over $1M) and to cover our houses, and sometimes we take landlord cover depending on the tenants going in. Most of this is tax deductible.

We have income protection on my husband because without his income we would be severely affected and probably have to sell a house, and this cover is tax deductible too. But to reduce the premium we chose a six month lead time because he has enough sick leave to cover that.

We don't bother with trauma cover because we have enough buffer and backing from family that we don't need this.

What I don't understand is the common belief that insurance companies are all about ripping us off when time comes for a claim. I have never had any issues with any insurance claim that I have made over many years. We have never had a "big" claim like losing a house, but so far (touch wood) every claim has been easy, no fighting the insurer and the one time we claimed on our landlord policy, the assessor could not have been more helpful or generous.

Maybe we have been lucky . I am rather cynical about lots of things, but so far, I have not been burned regarding insurance.

 

[DCI]

Make sure if you ever do get burned by insurance....you have cover for it..

I hear what you say about over-insuring. We have cover on our lives to ensure that the debts are nearly covered (over $1M) and to cover our houses, and sometimes we take landlord cover depending on the tenants going in. Most of this is tax deductible.

We have income protection on my husband because without his income we would be severely affected and probably have to sell a house, and this cover is tax deductible too. But to reduce the premium we chose a six month lead time because he has enough sick leave to cover that.

We don't bother with trauma cover because we have enough buffer and backing from family that we don't need this.

What I don't understand is the common belief that insurance companies are all about ripping us off when time comes for a claim. I have never had any issues with any insurance claim that I have made over many years. We have never had a "big" claim like losing a house, but so far (touch wood) every claim has been easy, no fighting the insurer and the one time we claimed on our landlord policy, the assessor could not have been more helpful or generous.

Maybe we have been lucky . I am rather cynical about lots of things, but so far, I have not been burned regarding insurance.

 

[steveadl]

What I don't understand is the common belief that insurance companies are all about ripping us off when time comes for a claim. I have never had any issues with any insurance claim that I have made over many years. We have never had a "big" claim like losing a house, but so far (touch wood) every claim has been easy, no fighting the insurer and the one time we claimed on our landlord policy, the assessor could not have been more helpful or generous.

Like all industries, there are good co's and there are dodgy ones.

 

[steveadl]

Another instance I dropped about 3k of camera gear..camera and flash unit.
All insured for 5k.. guess what they gave me.. 1k and said camera was not covered as it fell outside the front door and flash fell inside the front door boundary. So offered me a pity payout for being a loyal customer.to put towards a new flash unit only..what the....
Anyway yes insurance is the cost of peace of mind but beware the fine print/scapegoat clauses cause they get ya every time.
See ya

With equipment like that, chances are you'll have to pay extra to have it covered outside your premises. If you choose not to take that cover then.....

If in fact they didn't have to pay you out according to the policy, but paid you $1k anyway, I'd say that's pretty nice of them.

A lot of people seem to think insurance should be more touchy and feely rather than black and white. If people understand the policies they take out fully, a lot of angst could be avoided. Not saying I understand all my policies fully, but when something happens and it turns out less than what I would have liked, I know there's nothing to be said as it's all disclosed well ahead of time (unless they're breaking their own rules in which case, chase it up). Same problems occur with the big banks boogey men and their mortgage contracts, fixed/variable terms, fee charges, account rules etc. That's life.

 

[shuggy]

i get 2 milk crates full of mail every 2 months but have been slowly reducing it by getting my personal assistant to write 'return to sender' to all the crap i don't have the time to read and is deemed not important.

We skype every 2 weeks to go through the mail and sort it out. My PA goes through my mail and scans and emails me anything important and bins the junk.

I have also asked senders to email my mail where they can (rental statements, margin loan statements, distribution statements, dividend statements, tax stuff etc).

Life is too short to read mail.

 

[Francine]

i also was wondering about so much paid for house car health insurances etc.it all comes at this time of the years and its so much!

i have only had to make one claim in decades on house and contents but it was a big one and it was worth having it all these years. the company were mostly fabulous.

warrantees on cars i found were rubbish though. they give them to get you to service with them only for a few eyars and then when you come for any warrantee repairs they tell you that its not covered, that was my experience at least.

i know someone though who knows how to claim all softs of things on house and contents and she does.

do others do that?

francine.