With the recent hurricane season, mild throughout the summer only to bring a Category 4 Hurricane Ian at the end of September, we are getting many questions about insurance and stewardship.
Homeowner’s Insurance
Property insurance is required to be carried by mortgage carriers. In Florida, the insurance market is beleaguered and highly politicized. The consumer stands in the middle between politicians and insurance companies. We recommend carrying solid coverage to replace your home’s structure(s) in event of a fire, wind damage, etc.
Flood Insurance
Too many homes have been built in dangerous areas that would have once been described as “building your house on sand” or on the side of a muddy hill or in swampland. If a home is built in an area that “looks” precarious, trust your gut over the FEMA maps. If there are canals running through the area, that (likely) means it was once wetlands; during a hurricane, nature tries to return the lot to wetlands. See North Port, Florida. Our advice would be NOT to invest in homes in precarious areas. If you must do so, we recommend flood insurance, which is only available through FEMA.
Life Insurance
If someone depends on you for support, you should have life insurance. It’s a complicated industry, but we recommend term insurance in almost all cases. See one post here. Young folks without kids probably don’t need it at all. Stay away from “whole life” or “universal” policies.
Health Insurance
We will cover this further in future posts. We have discussed using the medical share plans in the past. We also love HSA’s.
“Preppers”
Don’t knock the preppers; they look pretty good during a storm. You should be prepared with water, medicine, first aid, non-perishable food, and snacks for ice storms, pandemics, snow, hurricanes, or whatever comes your way.
