Quote:
Originally Posted by 4RE KLR
Thanks Ron,
It really is getting old.
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Bomelia,
Insurance companies do not insure for catastrophe, in the sense that you are thinking. Sure you and I think Katrina was catastrophic even though it may not have "personally" touched either of us.
The elements of insurable risk are:
It must be Calculable
It must be Affordable
It must be Non Catastrophic
It must be Homogeneous (similar)
It must be Accidental and Definite
It must be Measurable
Yea, yea, I know. If your house burns down that is a catastrophic event to you. However it does not fit the insurance industries definition of a catastrophe. Sure you will get paid on the loss.
The insurance industry defines a catastrophe as, for example and act of War.
BTW:
I am not trying to argue with you here because I believe you are on the right track.
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Actually there are catastrophic health insurance policies available. Policies that do not pay for minor or routine care. The insured must be out-of-pocket $10,000.00 before the insurance pays anything. The premiums are a mere fraction of regular policies.