192

I'd say your tenant is out $750, not you. How you handle it is totally personal preference. If you want to be the super-nice landlord and eat the loss this one time, then you might gain some karma and hopefully they'll be awesome tenants for the remainder of their stay. Are they the kind of tenants you want to be nice to because they deserve it? You (and ...


183

Because people are Risk Averse. Suppose that you own an asset worth $10,000 to you. Suppose that each year, the asset has 1% chance of being stolen (or completely broken). The expected value is 99% x 10,000 + 1% x $0 = $9,900. This is the average outcome if you do not buy insurance. Now consider two mutually exclusive outcomes: 99% chance of keeping $...


174

In terms of pure expectation of return, taking out insurance is always a losing proposition - by which I mean on average people who take insurance lose money on it. Simplistically the amount you get back times the percentage chance of you needing it is always less than the premium, and you know this is true because insurance companies (who are very, very ...


133

The insurance company issued the check. I'd contact the insurance company to have the current check voided and a new one issued to the pharmacy.


110

as a safety net for emergencies, is purchasing life insurance a practical investment? Life insurance is not an investment. It is a necessary expense if anyone depends on your income. You should expect to lose money on life insurance (otherwise, it means you've died). You should absolutely get life insurance ASAP. If you were to die today, your family ...


101

I think the key to this question is your last sentence, because it's applicable to everyone, high net-worth or not: How would one determine whether they are better off without insurance? In general, insurance is a net good when the coverage would prevent a 'catastrophic' event. If a catastrophic event doesn't happen, oh well, you wasted money on ...


101

Negotiation 101, never be the first to say a number. You tell them you have a $300,000 limit and magically they want $300,000. Alternatively, they may just assume you carry the minimum.


97

The garage probably hasn't understood from your description that the car isn't driveable. Contact them again and tell them the car is under warranty, it is not driveable, and you want it fixed or want a replacement car. If they still refuse to come and get it, then tell them you will get a third party to tow it to them and charge them for the towing costs. ...


85

Cash should never have been placed in the mailbox in the first place; this is what checks are for. I would be a bit surprised if that constitutes your accepting payment, but I Am Not A Lawyer. You need local legal advice; this is the sort of thing where local rulings matter. Definitely report the missing money to the police, no matter what else you do. You ...


78

Some brief research suggest that boat insurance is ~1.5% of boat cost/year. So a $10,000 boat might be about $150. Other sites say average boat insurance is $300-500/year. So a bit of a range to work with. Though the risk is relatively low, people would rather a small planned expense than risk a large unplanned expense. In addition, most policies cover ...


76

Discussions around expected values and risk premiums are very useful, but there's another thing to consider: cash flow. Some individuals have high value assets that are vital to them, such as transportation or housing. The cost of replacing these assets is prohibitive to them: their cashflow means that their rate of saving is too low to accrue a fund ...


76

You submitted a claim for damage to the deck. The insurance company notified the mortgage company. Now the mortgage company wants to make sure that the collateral for the loan is still in good condition. They want you to make the repairs that you insisted needed to be done. They may even require you to use a licensed contractor before releasing the funds. ...


71

Having worked in insurance, I can give you a few pointers. Firstly, state that you "may have to complain". Insurers hate complaints because they really complicate matters, are loads of work and must be tracked. I would advise not actually escalating it to a complaint until later as this may cause a delay as the actual process is quite convoluted. Mentioning ...


65

This is fairly simple, actually. You should insist on payment for the rent payment you never received and stop accepting cash payments. If you want to be nice, and believe the story, allow the tenant additional time or payment in installments for the missing $750, but this is a textbook example of why it's a bad idea to transact with cash. Insist on cash ...


64

An insurance is a gamble with the insurance company where you bet that something bad will happen to you and they bet that everything will be fine. The insurance company decides the odds for that bet, and they do that based on detailed analysis of a huge amount of statistical data. So you are betting against the house. If an insurance would be worth it from a ...


57

It isn't just GEICO that tells you this, every US car insurance company instructs their customers to not mention the amount of coverage. Your job is not to negotiate. Your job is to collect the specified information and to hand the claim process over to the insurance company. That is also why they tell you not to admit fault. When you start discussing the ...


54

I assume this happens to everyone in the US, and I believe the reason is simply due to competition. Here are my data points: I was with Allstate for 17 years, and the rates were pretty consistent for a long time, then about 6 years ago every 6 months my rate would go up slightly. After 2-3 years of that I called and I asked why? I was told it was due to the ...


51

Yes, and the math that tells you when is called the Kelly Criterion. The Kelly Criterion is on its face about how much you should bet on a positive-sum game. Imagine you have a game where you flip a coin, and if heads you are given 3 times your bet, and if tails you lose your bet. Naively you'd think "great, I should play, and bet every dollar I have!" -- ...


47

This entirely depends on two factors: What the insurance covers. What the likelyhood of actually utilizing the insurance to the full dollar amount. Now let's look at what AppleCare gives you: Extended phone support from 90-days to 3 years (2 years for an iPhone, iPod Touch, or iPad) Extended hardware coverage from 1 year to 3 years (2 years for an iPhone, ...


46

There are 2 maxims that help make sense of insurance: never insure anything you can afford to replace always insure anything you can't afford to lose Following those 2 rules, "normal" insurance makes sense. Can't afford to replace your car? insure it. Can afford to lose your TV? Don't insure it. People with a net worth in the low millions have very ...


45

Your mortgage agreement probably gives you three options: Pay off your mortgage in full. Use the insurance company's deck-repair payment to fix your deck to be similar in quality to what it was when you took out the mortgage, allowing for normal wear-and-tear since you took out the mortgage. In other words, you can "restore or repair the property to avoid ...


45

Life insurance should be used to replace your income for someone that depends on it. Since that is not the case, and you have enough in your estate to cover funeral costs, it sounds like you do not need life insurance. It's a "nice to have" at this point. I'm just asking if my surviving family would be able to use my estate to pay funeral costs? Could ...


43

As someone who has worked for both an insurance carrier and an insurance agent, the reason people buy insurance is two fold: to spread risk out, and to get the benefits (when applicable) of approaching risk as a group. What you are really doing when you buy insurance is you are buying in to a large group of people who are sharing risk. You put money in ...


42

Under EU law: within the legal guarantee period of two years, defective products must be repaired or replaced without any cost to the consumer. This includes shipping costs. This means that you will not bear the costs of the towing. If the dealer does not want to tow for you, you will be able to charge back.


41

Insurance is a financial product to control risk. The fact that a loss would not be catastrophic simply makes the decision to carry insurance less critical. It is perfectly reasonable to be "self-insured" in this case. This is assuming we are discussing replacement of your property vs liability (which you have made clear). Like many other products one buys,...


39

Self-insurance. Pay yourself a premium, and if something happens - buy a new phone. I've been doing it since I started using mobile phones. Made a fortune off that self sucker paying the premiums and never needing the insurance.


37

There are a couple of reasons that a person might choose to use insurance even if they could handle the financial loss if something went wrong. They know their risk better than the insurance company. While it might seem odd at first glance that an individual can be better at assessing risk than a large company with thousands of actuaries. There are limits ...


37

You should start by making a written complaint to the insurance company itself. You have two angles of attack: What was discussed when she was sold the policy. Make sure you set out exactly what you believe you were told and highlight that they didn't ask about commuting (assuming that's the case). Ask them to preserve any recordings they have of the call ...


36

Life insurance is the perfect emergency safety net if your family would need a safety net in the emergency of your death.


33

If you never had a break in coverage, then you can answer "No" honestly. Your insurance was not cancelled. The reason that this question is asked is this: If you did have a lapse in coverage, and a problem arose during the time you were not covered, you might be trying to obtain a new insurance policy and then immediately make a claim on the situation that ...


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