A reader recently asked about what insurance policies I have. Here is a breakdown:
1) Car Insurance
I only have liability and uninsured motorist coverage (required by law) on my car insurance. My current premium is $187 for 6 months. My car is 8 years old and a few years ago I decided to self-insure and drop the collision/comprehensive coverage. I did just that will the recent minor car accident I had. Yearly Cost $375.
2) Homeowners Insurance w/ General Liability Policy
I have a homeowners policy with an additional $1M general liability policy (acquired when I starting renting my first house out). My current deductible is $1,000, but when I have time I plan on bumping up the deductible to a higher level. Yearly Cost $484.
3) Dwelling Policy for the Rental Property
I have a dwelling policy for my rental that is basically fire insurance for the house. It is required by the mortgage lender. Yearly Cost: $371.
4) Group Life Insurance (work benefit)
Since I have no dependants I feel there is little need for life insurance. My current net worth should provide enough for final expenses, current liabilities, etc. Once I get married I will re-evaluate this area. However, my employer offers a 2x salary life insurance policy that is no cost (other than taxes on GLI costs in excess of $50k). Yearly Cost: Taxes on $124.
5) Disability Insurance
This insurance is the most important for me. I recognize that my biggest concern/risk is becoming disabled. My employer offers a 50% wage replacement long term disability policy for no cost to its employees. They also offer employees the ability to buy your disability coverage up to 66 2/3% wage replacement which I have done. I would have more if I could find it at a reasonable rate; so far I just self-insure by trying to build my net worth as quickly as possible. Yearly Cost:$18.44.