Speaking as a homeowner, we didn't buy the house as an investment asset (though naturally we hope it doesn't depreciate too much). We bought it to live in, and are not paying huge amounts or over very long periods. Of course there are risks. That's why we carry insurance.
>>Of course there are risks. That's why we carry insurance.
Which also has a cost... You are not negating risk by buying insurance. You are simply offloading it to another party and paying them money on a regular basis. At the end of the day, it's still an expense.
That's right. It's economically more efficient for me to pay someone $1000 a year in order to be covered for most eventualities, because I estimate my annual risk at a bit higher than 0.3%.
