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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (28617)	10/18/2007 8:31:19 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78747

Actually, most advice on any insurance says that you should not insure at all (if you can afford it), because bets are skewed towards the insurer most of the time. There are occasions when they are not, for example, there was a period of time when auto insurance was underpriced due to price war. But most of the time, insurance is overpriced. In case of property, you are required to insure if you have mortgage. In case of liability, balloon insurance is usually worthwhile to cap costs. In case of health, you may be required to hold it (soon?). Actually, health insurance is the only one where you are continuously getting the benefits. The problem of spending .15% of portfolio is that over a year it is 1.8% of the portfolio and soon you are talking real money. ;) And it is not even clear how much and what kind of protection this .15% buys. ;) In any case, it would be good to calculate the benefit and the cost of the insurance beforehand, but few (none?) of us do it. :/