Insurance has been defined in many ways, including "spreading the risk from the few to the many" contains two concepts that we need to discuss. First we need to look at the concept of risk.
RISK is:
There is no uncertainty, which is why one can not insure the risk of loss from people with pre-existing medical conditions for the treatment of This medical care. I have common feeling of being in common with large groups of employees where they have anticipated medical treatment spread over the other workers premiums before the "unforeseen" risk of the healthy worker ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Property insurance that is already on fire and spread it to to other homes that are not.
One should be understanding that the concept of a "pooled" risk is made of a large number of insured, sharing the same geographical, climatic or political impact such as being in a flood plain, in a high crime city or All areas have repairs and replacements are more or less expensive than nationalorms. All have equal risks of loss but as a group have higher or lower accidents because of their location.
One can compute odds, but not actuarial compute risk as the event will happen, not randomly, but as a result of specific Lighteningitting Wrigley field can be calculated and many feel a more likely catastrophe than the advance team winning the World Series.
We are both the asset and the risk of losing all A roof, like everything else including the house itself, or part of the asset. The destruction of just the roof, can result in many thousands of dollars in cost and the additional loss or damage to the contents of the roof is partially or totally destroyed. If a roof shingle has a 20-year rating, the manufacturer recommends that it should be replace within twenty In fact, a roof seems to go bad or a storm damages it is least expected and most devastating to personal finances. This is t he risk that insurance was invented to cover.
Insurance does not and will not cover building defects or builder / contractor incompetence or malfeasance. Building codes changed, often requiring more expensive and better work and materials than when building first though. Insurance Insurance pays for what contractually insurance policies limit the risk on the insurance company to pay.
As an example, ALL homeowner & # 39; s policies pay for the damage wind and hail visit upon roof shingles but not the underlying damage stone might have done the wood decking under the shingle. felt replacement but not ins for that roof and the interior ceiling as that insulation should be installed prior to the installation of the roof.
The second concept is "spreading" the risk. Damage, destruction of the asset. As stated, it can be economically catastrophic event if and when, unexpectedly and primitively , a roof and interior defects must be borne by us. insurance limits the damage to each of us from a catastrophe to the annual cost of our insurance premiums by spreading the risk to our neighbors who are paying premiums to the same insurance company. This is why insurance is an insurance premium is based on the calculated risk, this is why insurance premiums and the combination of marketing costs, administrative costs and profits and the combination of things. is described and defined as "spreading the risk" from one or a few to the many (all other insured in the same pool of risk).
Contracts of insurance are a contract of a contract in which the performance of one or both part is contingent upon the occurrence of a particular event, death, sickness, accident, fire, flood, etc.
When this occurrence or consumer contract is a standardized contract, it is a good idea to consume it. without he or she acquiesces to the form and terms of the contract.
By law and rules and regulations, we can not even negotiate price as the state insurance commissioner would consider a discount as an illegal kickback or rebate or discriminating against other policyholders.
Bob Michaels, JD - Managing Member - Git Er Dun Roofing LLC
