There are some situations that make me very nervous. I’m not talking about when my girls go snowboarding or I have to give a speech using an entirely new software platform. I’m nervous about those things too, but right now, I’m referring to an entirely different type of nervous. It’s when I’m speaking with someone about their insurance and they say, “I don’t need property insurance because I don’t have a mortgage.”
Yes indeed, that statement makes me nervous, especially if I sense that I may not be able to get them to change their mind.
No need for property insurance is the stance you take when you are 1000% certain that nothing will ever happen to your home. There won’t ever be a fire, whether big or small, no frozen pipes or a water heater that floods your basement, no natural disasters of any sort because you’re sure that none of this will ever happen.
Put that way, it seems a bit foolhardy, doesn’t it?
These things happen, and almost always very unexpectedly, and it might just wind-up costing you more money than you ever imagined.
Household repairs can be very costly, damage from a fire or flood can mean major home renovation, and most people don’t have the discretionary funds to take care of the necessary repairs without going into debt.
And this doesn’t only apply to homeowners. The very same occurrences can also occur if you are renting, and the cost to replace your furniture, clothing, exercise equipment, and whatever else you have in your home is rarely factored into your budget!
I know that no one ever thinks that something is going to happen to their home, where we feel secure and safe. It would be awful if we woke up each morning with a sense of gloom and dread for what might happen during the day.
But these things do happen and when you find yourself in this type of situation, it is far better to be insured so that you can start to rebuild what has been damaged or lost.