Atlas Shrugged

Wrapping a troll comment within a troll post now that’s the kind of skill that deserves respect.

amazinmets73

Uh, what? Assuming this is the "everyone I disagree with is a troll" approach?

amazinmets73

Yes, I perfectly understood that. Don't see how it invalidates my original statement.

Koyote

Oh, I can invalidate your original statement quite easily. You wrote:
Financially, insurance is a zero-sum game. If "we" includes all of us, including employees of, and investors in, insurance companies, then ending insurance would leave "we," in total, with exactly as much money, on average, as before. BUT: in reality, since people voluntarily purchase much of their insurance, it must make them better off -- otherwise, why would they purchase it? Thus, ending insurance would make "we" worse off, on average.

Regardless of the above, if we all skipped insurance, plenty of innocent people would get screwed. You seem unperturbed by that. Weird.

70sSanO

There is a big difference between buying insurance to protect one's possessions or one's health, and buying insurance to protect someone else's possessions and health that you damage or destroy.

Taking responsibility for one's actions as it relates to others includes making the injured party whole, or at least restoring that life as best possible. At that point insurance is not a matter of preference, it is a matter of restoring that individual(s). If someone does not have the means to self restore another, then insurance is the only avenue that any individual with any remotely moral compass must take.

Insurance for material things is a totally different subject. But, insurance companies only exist because they receive more in premiums and investments than the claims they have to pay out. With a large enough disaster, insurance companies will default. Most insurance companies limit their liability and require additional riders at an additional cost to the policy holder. While it may be borderline unethical, there is probably a very large number of policy holders that never read their policy and have no clue that flood insurance, or earthquake insurance, or wildfire insurance is required in areas prone to those events.

In the end, policy holders are betting that the event is small enough to be able to receive compensation from the insurance company. As an example, I doubt that insurance companies are in a position to replace every home in America that has a homeowners policy.

John

Koyote

Nor should they be in that position.

70sSanO

There would seem to be an ethical dilemma when, after years of paying premiums, someone’s claim is not covered solely because of the timing of their loss.

Of course, before that would happen, policies would be cancelled/not offered in areas that are considered the most vulnerable.

John

amazinmets73

Respondents, I am not saying we as a society shouldn't utilize insurance. It's probably better if everyone has slightly less money as opposed to most people having slightly more and a not insignificant percentage having their lives devastated.

Koyote

I can only think of a few scenarios which would result in the destruction of "every home in America that has a homeowners policy" -- and in each of those scenarios, there is no one left alive to file claims.

Beyond that, no insurance company is capitalized to pay off the maximum claim to each and every policyholder; like most of us, they don't plan for events which have vanishingly low probabilities of occurrence.

70sSanO

Actually every home was a stretch. But I could see a series of disasters of a large enough magnitude hitting higher density expensive regions of the country resulting in potential claims exceeding what an insurer is able (wants) to pay.

John

_ForceD_

Just want to point out that if the “every insured home in America destruction” argument played out…we likely have much bigger problems, and would be lucky to be alive to collect from insurance companies.

Dan

tomato coupe

Insurance companies typically reinsure with other companies to reduce their risk, and spread the cost of a disaster over a larger base.

amazinmets73

I wonder if our currency would have any value in an apocalypse.

Koyote

Each state regulates insurers and has systems in place to provide coverage in events such as you are describing. However, the only insurance companies that have gone bankrupt, in my recollection, have done so due to poor investment decisions -- NOT because of mass claims such as in your scenario. Think about AIG during the financial collapse of 2008.

tomato coupe

Currency is a scam.

amazinmets73

Oh great, another person who has decided to troll me because they disagree with my position on insurance.

And yes "troll" is applicable in this case.

tomato coupe

How do people get through life without a sense of humor?

Koyote

Psychological projection.

indyfabz

I have owned my home for going on 18 years. During that time, I have paid and estimated $15,000 in HO insurance premiums to protect my dwelling and its contents. Not sorry one iota for paying that even though I have never filed a claim. (I did have a $1,200 bike stolen, but with a $750 deductible, it wasn't worth filing a claim.)

amazinmets73

Thanks for sharing your experience and perspective. Sorry about your bike 😔

Polaris OBark

My bill for this upcoming year is an eye-watering $6.5K.

Koyote

I suspect that some of the differing opinions on insurance come from life circumstances...If you don't own anything of significant value, then insurance is less important. On the other hand, if you own a home, or perhaps have significant assets which could be subject to a legal judgment, insurance might seem more sensible. (As regards the latter: on top of substantial liability coverage on our home and auto insurance, we carry a $1 million umbrella liability policy. Since we have much more than that amount in retirement accounts, it's a very cheap way to protect our future.)

Darth Lefty 

Unless they mentioned this shipment in particular in their message it's just the same people who have been trying to reach you about your car's extended warranty

amazinmets73

What is your house valued at?

indyfabz

Zoinks! I guess living in a relatively small, brick and masonry, urban row home on a relatively quiet street traffic-wise nowhere near a floodplain has at least one advantage. Fire is pretty much the only peril that is likely to do any serious damage.