State Farm ---- Katrina - Page 4 - PeachParts Mercedes-Benz Forum

Hatterasguy · #46 11-08-2007, 09:09 PM

I know, my point is if the house is a total loss, and you are able to sell the lot for $200k, you still lost $250k. Not to mention whats inside, all your stuff, so how many years of premiums is that?

Hatterasguy · #47 11-08-2007, 09:10 PM

Quote:

Originally Posted by catmandoo62

man for that 1.3 mil out here in iowa you could buy about 300 acres
of the most fertile land on earth,then rent it out for 4-500 an acre per year.

Or you can buy a 200X300 on the water, that is just over an hour by train from NY city. Move further south and the price skyrockets.

t walgamuth · #48 11-08-2007, 09:15 PM

OK, I suspected you understood that, but I couldn't quite tell from the wording of the post.

about fifty years of premiums?

The thing is, no matter how strong you are (SRJ?), unless your house is free and clear you have no choice, the lendor will insist on having insurance.

A good friend of mine, about 25 years ago had a very nice corvette....about three years old. And he was a little too thrifty and since he had it paid for he didn't have any collision on it because it was too expensive. So one night after having three or two beers he was out howling along a two laner and managed to spin it between the concrete sidewalls of a bridge. He went out the passenger side window and bounced along the pavement for a couple of hundred feet (he didn't believe in seatbelts either). Fortunately he was just really really skinned up.

He cried about the loss of the vette though.

It would take a strong man (or woman) not to cry if their house burned down uninsured. (a man like SRJ)

Tom W

Skid Row Joe · #49 11-08-2007, 09:26 PM

Quote:

Originally Posted by Hatterasguy

I know, my point is if the house is a total loss, and you are able to sell the lot for $200k, you still lost $250k. Not to mention whats inside, all your stuff, so how many years of premiums is that?

Since Berkshire-Hathaway Inc stock was selling for $1,700 a share, in the year I bought my home, and insurance premiums were about $750 a year, and I have plowed those dollars into shares of Berkshire stock every year since, the Berkshire is now worth close to $135,000 a share........which was the better decision........?

Those dollars now in shares of Berkshire.........or stacks of empty premium receipts.........? BTW......the home is fine......

Never bet against an insurance company.......they'll beat you every time..

Skid Row Joe · #50 11-08-2007, 09:30 PM

Quote:

Originally Posted by t walgamuth

......about fifty years of premiums?

The thing is, no matter how strong you are (SRJ?), unless your house is free and clear you have no choice, the lendor will insist on having insurance.

Tom W

This guy is 'brilliant" he probably sells insurance.......lol!

Matt L · #51 11-08-2007, 09:31 PM

What was the historical peak of B-H stock value?

Hatterasguy · #52 11-08-2007, 09:32 PM

Quote:

Originally Posted by Skid Row Joe

Since Berkshire-Hathaway Inc stock was selling for $1,700 a share, in the year I bought my home, and insurance premiums were about $750 a year, and I have plowed those dollars into shares of Berkshire stock every year since, the Berkshire is now worth close to $135,000 a share........which was the better decision........?

Those dollars now in shares of Berkshire.........or stacks of empty premium receipts.........? BTW......the home is fine......

Never bet against an insurance company.......they'll beat you every time..

Good point.

Skid Row Joe · #53 11-08-2007, 09:35 PM

Quote:

Originally Posted by Matt L

What was the historical peak of B-H stock value?

This morning..........$135,600 a share.........

I believe it should be priced north of $150K.....

Hatterasguy · #54 11-08-2007, 10:05 PM

Maybe I should buy some Google stock at $700, before Google takes over the world and its shoots up to $100k+

aklim · #55 11-08-2007, 10:48 PM

Quote:

Originally Posted by hill

"My house is worth say $200K. Razed lot is $50K. I get to take the 50K and buy a house in a nicer neighborhood for $50K?"

In my area if a 1 acre lot with house burns down it goes from 400k to 350k. If you want to build a dream house that is one way to get all your permits fast tracked.

Building is worth 50K only? But lets say that is the figure we use. How many years of insurance payments is 50K going to make? Assuming an empty house with no valuables.

t walgamuth · #56 11-08-2007, 10:52 PM

Quote:

Originally Posted by Skid Row Joe

This guy is 'brilliant" he probably sells insurance.......lol!

No but my dad did.

Tom W

aklim · #57 11-08-2007, 10:57 PM

Quote:

Originally Posted by Skid Row Joe

Since Berkshire-Hathaway Inc stock was selling for $1,700 a share, in the year I bought my home, and insurance premiums were about $750 a year, and I have plowed those dollars into shares of Berkshire stock every year since, the Berkshire is now worth close to $135,000 a share........which was the better decision........?

Those dollars now in shares of Berkshire.........or stacks of empty premium receipts.........? BTW......the home is fine......

Never bet against an insurance company.......they'll beat you every time..

This is like saying that as long as you put your money into a savings account and skip car insurance, you will have the money at the end of the day. Well, yes, you are correct. However, that is assuming that you don't suffer a big enough loss to mess your life up. IOW, while I am building up my nest egg with auto insurance premiums, I don't get into a situation where I need $300K and I only have $20K.

2 questions then:

1. How did you KNOW the stock will make money and not crash.

2. How did you KNOW you will not suffer a loss BEFORE you make enough money from the stock to cover any loss. IOW, how did you KNOW (100% sure) that you would be in this situation. Could a loss have occurred the day after you moved in before the stock made money?

aklim · #58 11-08-2007, 10:58 PM

Quote:

Originally Posted by Skid Row Joe

This guy is 'brilliant" he probably sells insurance.......lol!

Sure he does. Otherwise he could never support insurance as an idea.

aklim · #59 11-08-2007, 11:00 PM

Quote:

Originally Posted by Hatterasguy

Good point.

Only if you omit the fact that a total loss can occur BEFORE he makes enough money from the stock to cover the loss. It's all a question of "Do you feel lucky?" My Homeowners paid for a new roof from hail damage. Paid for theft of property.

aklim · #60 11-08-2007, 11:02 PM

Quote:

Originally Posted by t walgamuth

No but my dad did.

Tom W

Ah. That is why you support insurance. Because your scumbag dad is making money off us poor stupid folk. Indirectly, so are you. You capitalist bastard, you.

If you weren't tainted with insurance money, you'd be just like him and be against it.

Edit: Being sarcastic, Tom. Just so you know.