As regular readers know, I tend to move a purist when it comes to insurance. So I've railed on medical necessity equally regards wellness insurance; the whole betoken is opportunity management.
And specifically the concept of Frequency vs Severity.
For example, it's unlikely that whatever 1 soul volition contract cancer (frequency), but those who do appear upwardly or then pretty steep bills (severity).
Or, closer to home, what are the odds that a ix calendar month quondam puppy volition demand expensive (and multiple) articulatio genus surgery? Again, non often, but a truthful pain-in-the-checkbook.
One to a greater extent than thing: insurance is (or ought to be) to a greater extent than virtually roofing the unexpected, which is why your motorcar policy doesn't pay for crude oil changes or novel wiper blades.
On the other hand,birth control convenience items are by in addition to large bought fairly often, but at a real nominal cost, so: frequency, but non severity, then non actually appropriate to insure.
But insurance has a cousin: warranties. Typically, 1 purchases these to comprehend things similar dishwashers in addition to refrigerators in addition to the like. But again, these aren't insurance (notice they never purpose the words "risk" or "premium"). Nothing incorrect amongst that, in addition to I'm non aware of whatever companionship offering these plans that claim to be.
Wish I could country the same for the insurance industry.
Our longtime guru of all things P&C, Bill M, asked me the other twenty-four hours if I'd heard virtually the newest tendency inwards his side of the biz: equipment breakdown in addition to service describe of piece of occupation coverage.
The equipment breakdown passenger "covers the perils of mechanical, electrical in addition to pressure level systems breakdown," such equally A/C units, TV's, fifty-fifty kitchen appliances. And service describe of piece of occupation coverage is for coverage "provides protection against a leak, break, tear, rupture, collapse or arcing of a covered service line," such equally H2O in addition to sewer lines, fifty-fifty from ordinary article of apparel in addition to tear.
How inwards the broad basis of sports are any of these insurable risks? Well, obviously, similar a shot they all are, which offends my sensibility equally an insurance purist.
But similar a shot I desire to add together both of those to my ain policy.
Go figure.
Interested for yourself? As always, enquire your agent (or seek out a local, independent one).
And specifically the concept of Frequency vs Severity.
For example, it's unlikely that whatever 1 soul volition contract cancer (frequency), but those who do appear upwardly or then pretty steep bills (severity).
Or, closer to home, what are the odds that a ix calendar month quondam puppy volition demand expensive (and multiple) articulatio genus surgery? Again, non often, but a truthful pain-in-the-checkbook.
One to a greater extent than thing: insurance is (or ought to be) to a greater extent than virtually roofing the unexpected, which is why your motorcar policy doesn't pay for crude oil changes or novel wiper blades.
On the other hand,
But insurance has a cousin: warranties. Typically, 1 purchases these to comprehend things similar dishwashers in addition to refrigerators in addition to the like. But again, these aren't insurance (notice they never purpose the words "risk" or "premium"). Nothing incorrect amongst that, in addition to I'm non aware of whatever companionship offering these plans that claim to be.
Wish I could country the same for the insurance industry.
Our longtime guru of all things P&C, Bill M, asked me the other twenty-four hours if I'd heard virtually the newest tendency inwards his side of the biz: equipment breakdown in addition to service describe of piece of occupation coverage.
The equipment breakdown passenger "covers the perils of mechanical, electrical in addition to pressure level systems breakdown," such equally A/C units, TV's, fifty-fifty kitchen appliances. And service describe of piece of occupation coverage is for coverage "provides protection against a leak, break, tear, rupture, collapse or arcing of a covered service line," such equally H2O in addition to sewer lines, fifty-fifty from ordinary article of apparel in addition to tear.
How inwards the broad basis of sports are any of these insurable risks? Well, obviously, similar a shot they all are, which offends my sensibility equally an insurance purist.
But similar a shot I desire to add together both of those to my ain policy.
Go figure.
Interested for yourself? As always, enquire your agent (or seek out a local, independent one).
