Insuring My Own Shit Or Paying Someone To Insure It For Me
I paid $142k for my condo in cash. The HOA, at $160/mo, covers the building and the walls of my condo. If the whole building gets destroyed they would potentially build it back up, put up the wall frames, re-run the plumbing and electricity and leave everything from the 2×4’s inwards up to me.
This post is about insurance. I am not going to use any professional terminology which is why I don’t want to say “Self-Insuring” because that’s a whole different topic.
So, I could obtain property insurance, condo insurance specifically, for around $200 per year. Many would say, fuck it, that’s so little you might as well do it and not bother even writing/thinking about it.
The issue I have with this mentality is that for doctors nearly every ‘bill’ seems minuscule and month after month, year after year we tend to add more of these small recurring bills to our life and eventually lose track of them. Financial death by a 1,000 bill paper cuts.
The condo insurance would cover my walls, any water damage, windows and my property within the condo walls. It also covers me in case some fuckwad decides to sue me in case he or she falls and hurts themselves on my property.
I figure that I will hurt the person worse than any possible way they could have hurt themselves on my property should they decide to sue me… is that a form of self-insurance? Dunno, but I’m trialing it, let you know how it works out.
As for the walls, furniture, windows, and appliances etc, they aren’t worth much. I have vinyl windows, 6 of them total. The walls are the old school wood lattice, plaster, lead paint, oil paint, peeling paint, mold, latex paint, latex paint, latex paint, grime, latex pain, and dust. Yes, in that order. There is a washer/dryer set from the 1990’s, a dishwasher that’s functional and worth about $75 on CL. The range is a 220V 4-burner unit with an oven that I could get used for about $150.
There are no built-ins. The kitchen is some a plywood base with a 1980’s porcelain tile counter-top. The closet doors are fuck-ugly doors from Lowe’s probably.
The wood floors are considered ugly by anyone’s standard but they are gorgeous to me. Real wood with cracks and imperfections which has obviously had a little too much polyurethane coating. The wood floors lift up in various locations but I have been able to remove most of the rogue splinters with my foot.
So that’s what I have. Is it worth it to pay $200/yr even if I could afford it? It depends on what I could pay for based on my savings and my personal financial situation. I am not going to bore you by listing the replacement cost of every single thing in my condo including labor.
Let’s say something crazy like $50k… is it worth it? Yes, I could easily afford paying $50k to rebuild the entire interior of my condo. It makes no sense to pay for insurance in this situation. The reason is that my condo may never go up in flames, the building may never get destroyed by an earthquake etc.
The personal items I have in the condo such as documents and electronic and furniture are worth less than $5k… quite a bit less, actually. Should the day come when I have to build my condo back up after a disaster then I will simply buy cheaper items, do the labor myself and go from $50k down to probably $20k.