Should I get Renters'/Homeowner Insurance but not with an insurance company?

  • by Rahimah
  • Oct 05,2017
  • 15 answers

What I'm basically trying to ask is, should I just put money to the side every month, but the money won't be with an insurance company. I'll be in possession of the money instead of the insurance company having it. If you don't think this is a good idea, please tell me which insurance company you would recommend. My issue is that insurance just confuses me. For example, I bought a game and put a 2 year warranty on it, so if something happens I get it fixed or a new one. My issue is, what if after 2 years nothing happens to it and it works perfectly fine. I can't get that money back that I pretty much wasted on it. If I do invest in an insurance company, will I always have access to the money I put in every month? I know this might sound confusing, but thank you for any answers! If it still sounds confusing, what I'm trying to say is, instead of investing in an insurance company, should I just not, and just have keep money to the side for insurance?


LIKE OR DISLIKE:

  

Insurance Answers (15)

28AKO last week

You have a total misconception of home or rental insurance. You can't get home owner insurance if you don't own a home or rental insurance if you're not renting. Rental insurance covers the residence you're renting in case of a fire, someone gets injury, you damage property or dwelling unit. It covers you! Homeowner insurances protects your home

Help others find the most helpful reviews
Was this review helpful to you?  

fcas80 last week

Property insurance is not a savings account - after the policy expires, you do not get a refund.
If you have a large claim, you probably have not put aside enough money to pay for it. What if there is fire and most your possessions are destroyed? Also, renters insurance covers you for your liability in case you are sued such as if someone slips and falls in your apartment.
Buy the insurance.

Help others find the most helpful reviews
Was this review helpful to you?  

H. Marie last week

you can self insure if you like but it is not likely you will build up an amount you might have to pay for a catastrophic event
I fully understand your reasoning and have thought it many times myself until I had medical bills of $50K and would hate to have to use the money I had saved for many years that insurance covered
renters' insurance is not homeowners, you don't own the home, only your possessions are covered in renters' insurance

Help others find the most helpful reviews
Was this review helpful to you?  

Elizabeth last week

Yes you should get home insurance if your house flood katchafire a tree fall on it you be covered and you won't have to get a loan to rebuild your home always protect you and your family and why you doing that get a life insurance how's life is so uncertain nowadays sometime we don't want to think about these things look out for your family

Help others find the most helpful reviews
Was this review helpful to you?  

angel last week

no

Help others find the most helpful reviews
Was this review helpful to you?  

fire4511 last week

Insurance is to cover unexpected expenses that you cannot reasonably cover on your own. For example, I have a locker at a self storage faculty. I use it to store work supplies, but if something was to happen and everything was stolen or destroyed, I could purchase replacements without it causing me major hardship. The cost of a rider on my homeowner's policy is not that much, but I choose to self insure,
I do have full replacement value on my home, seeing as if something were to happen to it, I cannot easily pay to rebuild and replace contents.
One thing you should remember is that most renter's / homeowner's policies will pay for temporary housing if your home becomes uninhabitable due to a covered event.
For example, many years ago my wife and I rented an apartment after we got married. After about 6 months there was a fire in an apartment in our building which caused damage to the electrical wiring for the building. Power had to be shut off to the entire building until repairs could be made. Our renters insurance paid for a hotel room, and partially paid for the cost of meals that had to be eaten at restaurants

Help others find the most helpful reviews
Was this review helpful to you?  

StephenWeinstein last week

No.
Because if something DOES happen, then it won't be nearly enough money.
The amount you would need to put aside is what the insurance company pays out if something does happen -- which is a lot more than what you pay the insurance company if nothing happens.
It's considered a good idea to have insurance that pays out up to $300,000 for liability claims if someone else is injured (or pretends to be) in your home. Are you really going to set aside that much?
Renter's insurance is about $100 a year. Maybe $200. Whatever. The point is that if you just put aside that money, it would take over a thousand years to add up to enough to cover one big liability claim.

Help others find the most helpful reviews
Was this review helpful to you?  

Lisa last week

I hate insurance companies... Like Chris Rock says "They should call it incaseshit, (in case ****) and if nothing happens shouldn't I get some of my money back" But seriously when talking about "total loss" of everything you own insurance is the way to go. If it gets confusing it's because the insurance companies are confusing you hoping you will not file a claim. So, make them explain it until you do understand. There's an old saying called "Murphy's Law" basically it means if you have insurance (or a warranty) on something NOTHING will happen to it. and if you DON'T, well; that's when you will need it. I would rather have it and not need it...then need it and not have it. I think its GREAT that you have the ability to save that kind of money, without the temptation to spend it SO, you should do that anyway. But lets say you have only started saving, and after 1 $100 deposit everything goes up in smoke (get the picture) -VS- once you make your first insurance payment your covered. Renter's insurance is cheap and you can get good coverage for a little as $15-$20 a month.

Help others find the most helpful reviews
Was this review helpful to you?  

Judith last week

I don't think of insurance as an investment; I think of it as protection in case something goes wrong. I moved here 7 years ago and there have been 4 fires - 3 of the apartments were totally gutted; one destroyed the kitchen. Two of the residents didn't have insurance (this building has cement ceilings/floors/walls so fires are pretty much contained within the unit). Also if something is stolen you can claim the loss. There were condos across the street and they had a fire which destroyed every single condo in the building; many of those people failed to have insurance.
At 71 I've known too many people who have lost everything because of fires - I'm talking about people who rent or who own condos. The smart ones have renter's or owner's insurance to cover their loses. That means they can go out and replace what they've lost - from personal items to furniture and appliances.
Renter's insurance isn't that costly and it gives peace of mind. So call a few insurance companies (you need an insurance co) and compare costs - take the one which charges the least but gives the best coverage. You need to decide on how much you want to insure, whether you want replacement value (that costs more than when they replace the value after depreciation) and how much of a deductible you are willing to have.
It seems that there are apartment fires happening very frequently in the city I live in; some obviously worse than others but most of them destroy at least one apartment and its contents in each one.

Help others find the most helpful reviews
Was this review helpful to you?  

Dr last week

peri

Help others find the most helpful reviews
Was this review helpful to you?  

Lili last week

When I had renter's insurance, I paid less than $200 once a year for it. However, if there'd been a disaster -- say, a fire -- and I'd lost all of my possessions, the company would have paid up to $50,000 to replace them.
My homeowner's insurance costs more than that, but it would also pay out a LOT more than I've paid in. So, no, I don't think your idea is a very good one. I'd rather have the peace of mind that comes with handing over some money to be sure that I'd get a LOT of money if I needed it.

Help others find the most helpful reviews
Was this review helpful to you?  

DEBS last week

You can't compare a video game ($50?) to basically everything you own.
You are correct, however, in that insurance is the only investment you hope to never get a return on. You would rather pay into insurance for 20 years and never get anything out of it because that means something bad happened. For a video game, if it breaks you're out $50 so that's not a big deal. If your house burns down without insurance, then you just lost your life. Can you afford to replace everything in your life from a laptop to your cloths, to a fridge, to the actual house? It will far exceed what you've put aside.
That is why insurance steps in. They look at the odds of something happening and then everyone pools their money to cover those disasters. If 10 people don't burn down their apartment, that pays for the 11th person who does. Sure you can go without it, but it really depends on how much risk you're willing to take. I'm willing to chance that I won't need to replace my video game or TV, but I'm not willing to chance losing my roof and my life.
Assuming you're young without much to replace, then the insurance may not seem worth it, but if you start adding everything up it likely is. And if you're just dealing with renter's insurance and don't own the actual building, then it really is very cheap and a good idea.

Help others find the most helpful reviews
Was this review helpful to you?  

Casey Y last week

Why not read up about what insurance is, rather than asking why you should buy insurance from strangers?
Ultimately, if the game in your example failed, you'd be out $50. If someone sues you when they get hurt on your property (friends get sued all the time by friends when big money is on the line), do you have $100k sitting around to pay for their injuries?
How about if the building burns to the ground and you lose all of your possessions?
No, you don't get a pool of money to access. You are buying a guarantee or a promise that if something happens (per the terms of the contract), you get paid back or made whole. If nothing triggers the coverage, they keep the $150. If something happens and they pay out, you could be looking at 6 figures...

Help others find the most helpful reviews
Was this review helpful to you?  

Judy last week

Bad idea. If anything DOES happen that costs much, what you have set aside won't be anywhere near enough to pay for it. And no, the money you'd pay for insurance is an expense, not an investment, and you don't get it back.

Help others find the most helpful reviews
Was this review helpful to you?  

MagicianTrent last week

No, insurance isn't a bank account.
Insurance basically works as a group investment. The money you (and others) pay as premiums are used by the insurance company to cover the costs of repairing/replacing the things lost when one of you makes a claim. The insurance companies use statistics and historical data to determine the likelihood of such a claim happening and cost of such a claim, in order to determine what the premium needs to be.
From an individual's perspective, insurance is kind of a defensive gambling (and in fact, some religions have rules against buying insurance because they view it as gambling). basically, you are placing a bet that you will have some particular negative event covered in the policy happen. If it doesn't, well you lose the bet and you don't get any financial gain out of the premiums you paid. If you win the bet, you get money to help cover replacing what you lost due to that negative event.
One thing to bear in mind with this: Typically, rental agreements have a clause that require you to have renter's insurance in order for the agreement to be valid. Same for homeowner's insurance with mortgages, and car insurance for auto loans.

Help others find the most helpful reviews
Was this review helpful to you?  

Post a Answer

Your comment was successfully posted!

Or use your account on Blog

Error message here!

Hide Error message here!

Forgot your password?

Or register your new account on Blog

Error message here!

Error message here!

Hide Error message here!

Lost your password? Please enter your email address. You will receive a link to create a new password.

Error message here!

Back to log-in

Close