SDR: All true. It boils down to one’s philosophy on insurance. Given that insurance companies take a good share of each premium to cover their probable losses, I like to calculate the odds and “self-insure” as much as possible. Maximum deductibles, no collision insurance (save up and pay cash for the car), never buy extended warranties (where claim costs average over half of premiums), and keep a stash for those rare accidents. Get a $1m umbrella coverage for all misc. claims not covered by the above minimum coverage, which will likely protect the landlord for all other claims in our condo example.
