Portable Generator Insurance?
Anybody insure their portable generators? Talked with State Farm today and am trying to figure out what the best option is. A personal item policy (similar to insuring a watch) is one option that ha...
Forum Discussion
(Cost to replace) X (probability of replacement) = value of offsetting the risk.
So if a generator costs $1000, and there is a 10% chance of it getting stolen during the insurance period (probably one year), then $100 is maximum value of offsetting that risk. This gets more complex when deductibles are added in.
My thoughts.... Talk to your insurance people. Find out what it will cost. Then take that money and invest in a good lock & chain to secure the generator to a fixed object while camping. Continue to set aside that same amount of money every year. By the time you reach the break-even point (10 years in my example), it will probably be time to buy a new generator anyway - and now you have a good chunk of the funds set aside and available. If the generator is stolen before then, you also have a good chunk of the replacement funds available - and for what extra you need to spend, well you were going to pay a deductible anyway had you been insured.
Essentially self-insure the generator by setting aside the funds which would have been otherwise given away to the insurance agent.
-Eric
So if a generator costs $1000, and there is a 10% chance of it getting stolen during the insurance period (probably one year), then $100 is maximum value of offsetting that risk. This gets more complex when deductibles are added in.
My thoughts.... Talk to your insurance people. Find out what it will cost. Then take that money and invest in a good lock & chain to secure the generator to a fixed object while camping. Continue to set aside that same amount of money every year. By the time you reach the break-even point (10 years in my example), it will probably be time to buy a new generator anyway - and now you have a good chunk of the funds set aside and available. If the generator is stolen before then, you also have a good chunk of the replacement funds available - and for what extra you need to spend, well you were going to pay a deductible anyway had you been insured.
Essentially self-insure the generator by setting aside the funds which would have been otherwise given away to the insurance agent.
-Eric
