Claiming on anything small (a few thousand or less) isn't worth it because they get more out of you in premiums than you get in a claim.
If you can't afford a few thousand out of pocket in a pinch, then you simply can't afford to own a home and should be renting. Harsh, yes. Judgmental, yes. But also absolutely true.
The same thing for car insurance. Yes, you CAN claim on a minor repair. But you don't because the premiums will be more than what you'd pay out of pocket. You claim on catastrophic damage.
Another thing to consider is that when you make a claim, the insurance company has free run of your property to find faults which you then have to repair or you lose your insurance plus pay a termination penalty.
And if they can find something which relates to your claim...lets say your water heater is out of warranty...well, a water heater is supposed to be replaced when it's factory warranty expires. It's usually 10 years. Look, it's your own fault. And we're terminating your policy. So you get to repair your own water damage, you're now uninsured and have to find a new policy quick (good luck with this on your file) and you have to pay a termination fee because the insurance term wasn't complete.
Or you installed it yourself, and you aren't state certified. Well, that's a penalty from the state as well.
But if you didn't have it, you would have been ruined if you didn't.
Insurance is there for when you need it. Not for when it is convenient.
That DOES entail wasting large amounts of money throughout your life.
You essentially have a choice between two really horrible alternatives.
1. You risk paying a lot of money and getting nothing from it.
2. You risk losing everything and having no means to recover from it.
I've been a homeowner for almost ten years and I've never gone a day without my property insured. It's just not worth the risk.
Consider it a variation of Pascal's Wager.
[Edited by Neo7, 5/7/2013 11:34:59 PM]
If you own, cut a square of carpet out and see what's underneath. You can always put it back once it's dry. Carpet patches easy.
If you rent, get your landlord to do it.
Luckily for us Dhampy in the UK contents and building insurance is not all that expensive "its not cheap either but also its not expensive" especially what is covered some people claim on their insurance every 4 or 5 years so they recover the premiums,I AM NOT one of those people.
Insurance today is a must in most cases and the insurance people take a fortune from our premiums, also vehicle insurance is daylight robbery.
Found a slab leak. Hello
Edit: I'm actually full of surprises to the point I surprise myself. I forgot that I actually elected to have a small portion of my paychecks go into investment into the company I work for since I started. Nice chunk of money to be gained by withdrawing all my stock to help pay for that instead of an insurance claim.
[Edited by Neo7, 5/9/2013 10:13:58 PM]
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