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  • OT We All Should Look @ This.

    Hello Group,


    The reason I am posting this is the issue of insurance and coverage for our houses/shops and the contents of these.
    I have a friend that is not into machining but is a gun collector and he had his house burn to the ground 2 weeks ago. The cause was his oil furnace had burnt a hole in the heat exchanger and caught the floor joists on fire from the heat in the ducts to the main level of the house which caught the floor joists on fire and was a total loss. My friend has lost most everything. He has also found out there are 2 kinds of coverage, insured value and replacement value. Now his guns were on a seperate rider and fully covered but this got me to thinking, should this terrible thing happen to any of us are we covered for the loss of our house/shop and equipment. I checked with my agent and I am way under insured since I have added new equipment to the shop in the last year and a half, so I am making an appointment to update the coverage. My friend has only insured value on the house which is older and the total cost for repairs is not fully covered so he will have to find alternate funds to completly fix the house. Like I was told by my grandfather you are betting with the insurance company on the house and contents and in this case my frind has lost this bet so just take a moment to think about this for everyones sake both the ones we love and the ones we will leave our collection of tools to.

    Peace to all
    Mr fixit for the family
    Chris

  • #2
    I don't use insurance myself for a few reasons...
    Insurance is a company designed to make profit, So clearly they pay out less then is paid in = Net loss of money.

    Its thier job to try and *not* pay you out to make higher profits... So you are paying someone whos job is to try and not pay you back and may very well denie your claim for whatever reason they can find.

    By very difinition, you are paying more then you will on average get out. Maybe its a little better with home insurance.. but when I checked on auto insurance I found that.....
    in just 5 years time, the cost of fire/theft/flood insurance would cost me more then I spent to buy my truck, and they would not pay out any more then the 'value' of my truck (What I paid when I bought and registered it)
    For collision insurance.. Again, about 5 years before it costs more in insurance then my truck is worth.

    So for full insurance id need to have my truck catch fire/be stolen or run into something due to my own fault, every 2.5 years, just to brake even, assuming they pay out every single time, and they may not.

    I think I have had my truck for about 6 years now, So by not buying insurance, Not only do I still have my truck, I have enough money to buy two more just like it!
    Play Brutal Nature, Black Moons free to play highly realistic voxel sandbox game.

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    • #3
      Well said- some things it just doesn't make fiscal sense to insure.

      However, if your uninsured house burns down, well, you'd better
      have been saving money for the new one! It's called 'self- insurance'
      around these parts...

      Insurance IS in the business of money and risk. If you have a low risk, high stake
      asset (like a house) it usually makes sense to pay into the risk- levelled
      pool that the insurance company provides.
      If you have a high risk low stake asset (like an '87 chebby van) it's usually not.

      And it ALWAYS pays to keep good records and have an attorney at hand when
      you try getting a payout- it's never a fun fight.

      t
      rusting in Seattle

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      • #4
        Insurance is something you buy in case you need it hoping that you don't need it. But its very handy if you are adequately insured when needed as the insurer will re-instate your house or what-ever or replace it.

        Its a matter of what and how much you are prepared to pay - or put another way - how much you are prepared to gamble by not insuring adequately - excesses included.

        In that case you are gambling on your being able to carry out any re-instatement. It must be done to the approvel of the insurer as they may refuse to re-insure you.

        In some cases the insurer can refuse your claim totally if they say you are too inadequatelty insured based on your renewal which may have said that you are fully insured (when you were/are not).

        They may opt for demolition and full replacement - if the policy says so.

        The insurers have a lot of problems with bogus, inflated, or excessive claims as some claimants regards the insurers as a wide-open anything goes honey pot.

        Some insurers (in their policy) will not insure houses where the wall and roof insulation are saturated - as it may be if the house is flooded or a lot of water was used to control a large fire.

        It it were me here in Australia, I'd make sure that all authorised, allowed professionlly- and owner-installed gas, electricity and heating cooling etc. and get a certificate to say that it has been - about every 5 years or so.

        These inspections can uncover/find some potential "smoking bombs" that you may not see or find or recognise until it "happens".

        Tread your own path.

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        • #5
          Originally posted by Black_Moons
          I don't use insurance myself for a few reasons........
          ........I think I have had my truck for about 6 years now, So by not buying insurance, Not only do I still have my truck, I have enough money to buy two more just like it!
          Do you have liability insurance if you get into an accident and it's your fault, in case the other party sues you for property loss and personal injury?
          Location: Saskatoon, Saskatchewan, Canada

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          • #6
            Originally posted by Arcane
            Do you have liability insurance if you get into an accident and it's your fault, in case the other party sues you for property loss and personal injury?
            Madatory in this province. $200,000 for them, and *$1,000,000* for 'myself' if they don't have 'enough insurance'

            Funny how I can't opt out of insuring *myself*, But thats what you get from a monoply on car insurance that keeps raising the mandatory coverage rates because people stoped buying the optional coverage that cost more then thier car was worth every 5 years.

            On a subnote, theres a big diffrence between replacement and value insurance.
            Replacement on a lathe: $3000
            Value of a lathe: $300 because thats the price they found on craigslist for a used claped out 1970 lathe.
            Replacement of a HF tool: $20
            Value of a HF tool: $2
            Play Brutal Nature, Black Moons free to play highly realistic voxel sandbox game.

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            • #7
              There are times when insurance really pays off, the city where I work and the surrounding area had an earthquake that pretty much munted everything about 30 billion , one of the largest single insured losses ever. The insurers and reinsurers took a good hit on this, sometimes it just pays
              My neighbours diary says I have boundary issues

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              • #8
                Insurance is over rated. I don't live on the coast or in tornado alley or at a foot of a volcano. When I look around I see maybe MAYBE one house every couple years in a town of thousands of houses burn to the ground. I'll take my chances and save my money. Not having house insurance for the last 15 years already saved me more than my machines cost so I wouldn't be to upset if everything let the smoke out.
                Andy

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                • #9
                  Originally posted by Yow Ling
                  There are times when insurance really pays off, the city where I work and the surrounding area had an earthquake that pretty much munted everything about 30 billion , one of the largest single insured losses ever. The insurers and reinsurers took a good hit on this, sometimes it just pays

                  You know what we call people that live in areas that get devastated over and over again year after year?
                  Andy

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                  • #10
                    Originally posted by vpt
                    You know what we call people that live in areas that get devastated over and over again year after year?
                    You mean the ones that re-build along the Mississippi river in the flood
                    plain? :-)
                    ...lew...

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                    • #11
                      Originally posted by Lew Hartswick
                      You mean the ones that re-build along the Mississippi river in the flood
                      plain? :-)
                      ...lew...

                      Yeah those kind.
                      Andy

                      Comment


                      • #12
                        Re: When it comes time to file a claim,:

                        The insurance company's attitude changes quite differently then, compared to when you got the insurance policy and the agent was your'e BEST buddy, hell, he even gave out "Free" pens!!

                        I never had insurance for over 24 years, due to a previous dispute with them, (i know quite a number of people who still don't have insurance,) So i was carefull as could be, kept my chimney's safe and clean, and crossed my fingers that i wouldn't be hit by lightning etc.

                        Now if your'e paying a mortgage thast's a different ball game as the motgage holder will demand you have insurance to protect his interests.

                        Comment


                        • #13
                          Insurance

                          We just had a house fire 3 weeks ago. We were in bed about to go to sleep when the Shop Wench says "Do you smell something strange?" I did so we went to check it out. Opened the door to the bedroom and were instantly overtaken by thick black smoke. Being of a somewhat intuitive nature, I suspected right away that something might be amiss. We grabbed the dog and made our way through the house. Once outside we could see flames shooting up from both sides of the chimney. At that point I was pretty sure that my suspicions were confirmed.
                          To make a long story shorter, the fireplace had caught the inside of the wall on fire due to deteriorating mortar in the firebox area.
                          We had replacement insurance and our insurance co. got on it right away and is taking care of everything. They had just replaced the house and shop roof due to hail damage for nearly 20 thou. in December. This is looking like about 30 to 40 thou for repairs. They have been very good to us and at no time did we have to fight with them to pay for something.
                          We are now living in the apartment over the shop (the servant's quarters - how embarrassing) for 2 or 3 months till repairs are done. This story will have a happy ending (at least it looks that way now) though it was scary for a while. The shop is OK thankfully. It is a separate building.
                          Kansas City area

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                          • #14
                            Yeah, you guys that dis insurance have obviously never had a need for it, and with your attitudes, I hope you never do. But most of you who squall are full of hot air. Yes you can do the "math" and it may come out with numbers you don't like... if you never need it.

                            My house burned to the ground twelve or so years ago, and were it not for the dreaded insurance, I'd still be in a helll of a pinch. You cannot, save for a select few, have enough money to put your entire life back together by being "self" insured. A catastrophic event leaves you with NOTHING. Not even clothes to wear. NOTHING.

                            It may be a pain in the wallet to have insurance, but it's way more painful not to have it. I hope most of you are not swayed by the foolish few who think insurance is only a racket. I'll tell you it's a Godsend, and I know this from horrible experience. B!tch about it if you want, but pay your premiums. I hope you never need it.

                            Mark

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                            • #15
                              Originally posted by Yow Ling
                              There are times when insurance really pays off, the city where I work and the surrounding area had an earthquake that pretty much munted everything about 30 billion , one of the largest single insured losses ever. The insurers and reinsurers took a good hit on this, sometimes it just pays
                              And several insurance companys went bankrupt. Wait no.... Several reinsurance companys went bankrupt. wait no... that did'nt happen either... Several reinsurance companys paid out a small amount compaired to the premiums they get every year and are still in business with CEO's making millions of dollars per year... Ah, Yes, thats what happened.

                              I think it would only cost me about.. $20,000 to replace everything I own thats not photographs/etc/unreplaceable. Not really much to worry about. I rent as to buy this house would cost 100 *years* worth of rent. So really, im not out much if it all goes to hell.
                              Last edited by Black_Moons; 03-09-2012, 02:24 PM.
                              Play Brutal Nature, Black Moons free to play highly realistic voxel sandbox game.

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