CHAPTER 11The Savage Truth on Protecting Your AssetsYour Home, Your Auto, Your Wealth

You’ve worked so hard to build up financial assets—whether your home, your car, your furniture and other possessions, or even the money you hope to use for retirement. Doesn’t it make sense to protect those assets from disaster, especially when insurance is available at a reasonable and competitive price?

But thinking about insurance requires thinking about loss— something we’d all prefer to avoid. The most basic Savage Truth when it comes to insurance is that not having insurance is like tempting fate. You can come up with a million excuses, starting with not having enough time, not having enough money, and not understanding the policies. But in the end, if you stare at the ruined pieces of your hard work after a loss, you’ll wonder why on earth you didn’t read this chapter and take action.

The Savage Truth on Homeowners Insurance

As a result of the housing and mortgage crisis of recent years, we’ve all come to have a new appreciation of the meaning of “home, sweet home.” If you’re fortunate enough to have your home intact, it’s time to reconsider how much homeowners insurance is enough and what coverage you need.

A basic consultation with your insurance agent will give you a checklist of the specific coverage and amounts you need. But here’s a look at some of the issues you hope you’ll never face. My greatest wish for you is that the premiums you pay for homeowners insurance are all “wasted”—that ...

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