Chapter 16. Managing Risks Involves More Than Buying Insurance


“The first step in the risk management process is to acknowledge the reality of risk. Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning.”

 --Charles Tremper

While securing insurance is crucial to protecting your financial security, you can and should do more to manage risks than simply throwing money at insurance policies. Plenty of sensible non-insurance steps are free or low cost to take, can reduce your insurance costs, and improve the quality of your life. That’s what this chapter is about.

Buy a Home at Low Risk for Natural Disasters

You live in your home and spend a lot of time there. You can buy insurance to cover the risks of flooding, hurricanes, ...

Get Let’s Get Real About Money!: Profit from the Habits of the Best Personal Finance Managers now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.