Comment by nullindividual

3 years ago

It’s not a choice to be part of the insurance market for the vast majority of American homeowners. What you describe is choice in name only.

8 comments

nullindividual

Reply
rfrey  3 years ago

Your parent literally said

  if, for example, your liquid net worth is 100x the replacement cost of your
  home.

and

  for the vast majority of people, rebuilding their home is not feasible with 
  their current net worth.

  • ezconnect  3 years ago

    He's saying you are required by law to buy insurance for your house because of government regulation. There's no way of saying no.

    • borski  3 years ago

      Please point me to this law. Unless you are in a mortgage, no law requires you to hold homeowner’s insurance, and you can absolutely self-insure, to my knowledge.

      The same is not true for auto insurance in most states, though most also have an option to self-insure by putting up collateral.

      4 replies →

  • nullindividual  3 years ago

    Insurance is required by the lender (yes, I understand people purchase with cash outright, but that's a vanishingly small portion of the population).