Surviving Dystopia: Insurance

By Tim Gamble

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Insurance is a boring subject. It can also be complicated and confusing. And expensive. It might also seem like a waste of money if you never have to use it. But, insurance is important, and can be a real financial life saver when you actually need it (ask me how I know). Here's a quick review of insurance you may need. 

Homeowner’s or Renter’s Insurance - If you have a mortgage, your lender probably requires you to have homeowner's insurance. They probably also dictate certain minimum requirements for the coverage. But you get to choose the company and specific policy coverage you use, subject to those minimums. Review your policy every year, and make sure it is current and sufficient. Remember, property values tend to rise over time, as does the cost to replace your home and its contents. If you have the same coverage you had ten years ago, it may not be enough to replace your home in today's market. This could also be true if you've done major improvements or additions to your home. If you don't know your home's current value, work with a real estate agent or appraiser to determine its value and replacement cost. 

If you rent instead of own, you may want to consider renter's insurance, even if your landlord does not require it. Renter's insurance covers your personal property, such as furniture, jewelry and electronics, in the case of fire, theft, or many other perils. Liability coverage is also included in standard renter’s insurance policies, which provides protection if someone is injured in your home. Review your policy every year, and make sure you are comfortable with its limitations. 

Flood and Earthquake Insurance - Many people are unpleasantly surprised to learn that standard homeowner's and renter's insurance do not cover damage from flooding or earthquakes. Flood and earthquake insurance are extra. If you live in certain areas, you may be required to carry these. If not, carefully consider if you should have one or both. Make sure your coverage is adequate for your home and belongings.

Pro Tip: Take a complete inventory of your personal property. Have a list, including receipts and serial numbers when possible, as well as photographs (or video) of your belongings. This especially includes any valuable jewelry, antiques and collectibles. Don't forget your guns. Survivalists and homesteaders typically have more tools and other supplies than the average person, so an insurance company may doubt your claim unless you have proof. A list and photo record will help if you need to file an insurance claim. 

Life Insurance - Life insurance is important at all stages of life. It can cover funeral costs, pay off medical bills that surviving family members may otherwise be stuck having to pay,  pay off debt owed by the estate, and provide living expenses for a surviving spouse and children. Even young, healthy people may die unexpectedly, which is not only devastating emotionally for surviving family members, but is potentially devastating financially, too. Making sure you have adequate coverage for your personal circumstances is crucial. Be sure to review your coverage yearly, as your circumstances and needs change throughout life. 

Get started with this article on DaveRamsey.com: What Is Life Insurance and How Does It Work? It explains what life insurance is, and how it works. The article also goes into the different types of life insurance, who needs insurance, and how to decide how much insurance you need.

Health Insurance - Our health care system is both expensive and screwed up. Health insurance is extremely expensive, and the Affordable Healthcare Act (Obamacare) actually hurt more people than it helped. Your first, best, and cheapest option is not to get sick. Taking care of your health is extremely important, and is financially worth the time, effort, and expense. Most of us, including me, could take steps to improve our health and fitness. But, even healthy, fit people eventually need a doctor. What, then?

If your employer pays for your health insurance, that is great. If not, you have to navigate the confusing and expensive world of health insurance yourself.  Do not just ignore it. Start with this Dave Ramsey article: How to Save Money on Health Insurance.  If you are self-employed, check out the article How Do You Get Health Insurance if You’re Self-Employed? Unemployed? Health Care Options for the Unemployed.

Car Insurance - If you own a vehicle or drive, you are required to have insurance. The minimum requirements vary state-to-state, and if you are making payments on your vehicle your lender will also have certain requirements you must meet. However, you get to choose where you get your insurance, and the cost of coverage varies HUGELY from company to company. It pays to shop around for the best rates. Do this every time your policy is up for renewal.

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