Dave Ramsey says: Keep homeowner’s insurance in case of disaster
Recently, I made a claim on my homeowner’s insurance for hail damage. It was my first claim ever.
Since I’m retired and completely debt-free, including my home, and have over $1 million in the bank, is homeowner’s insurance still a good idea?
The house is insured for $250,000, with a $5,000 deductible, and the insurance is about $1,200 a year.
You’re obviously in good financial shape, but I’d still recommend you have an up-to-date homeowner’s insurance policy.
If something happened to my home or one of my rental properties, I could write a check and replace any of them. But I still have homeowner’s insurance on every single one.
It’s just good risk management to transfer the chances of a fire, tornado, or other catastrophic events to homeowner’s insurance.
If something disastrous happened, you could write a check to cover the deductible with no problem. But writing a check for $250,000? You’d feel that one.
Keep the policy, Mary!