Why do people pay for insurance? If they have the money to ensure protection in the case of damage or loss that isn’t guaranteed, why not save the money for when something actually happens?
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Mortgage companies require it. Which makes sense, but if I had enough money to not have a mortgage I would have the insurance so I didn’t need to keep 1m sitting around just in case my house burns up. Also, liability and lawsuits are covered under most home insurance which can be expensive if you’ve ever had someone fall on your property or steal/break something expensive. Not many normal income people have large sums of $ hust sitting around and the very small cost of insurance provides peace of mind, just in case. My 3 yr old once plugged the toilet on the 3rd floor of our old house, it cost $88k to clean up and replace all the damage it cause, insurance covered 100% and they organised everyone to do it. It was a traumatic accident but in the end we were made whole again by the insurance.
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