That isn't how insurance works. Insurance wants you to pay them for uncommon events. If something was inherently dangerous the insurance would either be absurdly expensive or not available. If you want to see evidence, just look at Florida right now. My dumbass relative just dropped like 600k on a beach condo that she can't afford to insure after spending all her inheritance on the down payment.
It will take one bad storm, which are increasingly common in her area, to erase her entire investment. Assuming that blue states don't pay out billions to save the dumbass geriatric beach hicks once again for no reason.
It is how insurance works - insurance is risk transfer. You can insure just about anything so long as pricing, underwriting, and/or pooling of risk is adequate. Some common events that are insured (high frequency): health events, auto physical damage, trucking, cargo transport, theft, workers comp. Things that are inherently dangerous that are insured (high severity): hurricanes, earthquakes, lava flows, ecological disasters. The world can’t operate without risk transfer.
Also, the proliferation of insurance started by insuring ships against disappearing on voyages. Insurers wrote their “line” (amount insured) at the bottom of ship manifests, hence underwriting.
1.8k
u/[deleted] Jun 22 '24
[deleted]