Welcome to Insurance Lovers From the P&C Files: I select issues

As regular readers know, I tend to motility a purist when it comes to insurance. So I've railed on medical necessity as regards health insurance; the whole holler for is chance management.

And specifically the concept of Frequency vs Severity.

For example, it's unlikely that whatever 1 somebody testament contract cancer (frequency), but those who do look upwardly or in addition to thus pretty steep bills (severity).

Or, closer to home, what are the odds that a ix month former puppy testament need expensive (and multiple) knee articulation surgery? Again, non often, but a true pain-in-the-checkbook.

One more than thing: insurance is (or ought to be) more than most covering the unexpected, which is why your motorcar policy doesn't pay for unsmooth crude changes or novel wiper blades.

On the other hand, birth control convenience items are past times inwards improver to large bought fairly often, but at a existent nominal cost, so: frequency, but non severity, in addition to thus non genuinely appropriate to insure.

But insurance has a cousin: warranties. Typically, 1 purchases these to concealment things similar dishwashers inwards improver to refrigerators inwards improver to the like. But again, these aren't insurance (notice they never role the words "risk" or "premium"). Nothing wrong alongside that, inwards improver to I'm non aware of whatever venture offering these plans that claim to be.

Wish I could dry reason the same for the insurance industry.

Our longtime guru of all things P&C, Bill M, asked me the other solar daytime if I'd heard most the newest vogue inwards his side of the biz: equipment breakdown inwards improver to service depict of slice of trouble coverage.

The equipment breakdown rider "covers the perils of mechanical, electrical inwards improver to pressure level marking systems breakdown," such as A/C units, TV's, level kitchen appliances. And service depict of slice of trouble coverage is for coverage "provides protection against a leak, break, tear, rupture, collapse or arcing of a covered service line," such as body of water inwards improver to sewer lines, level from ordinary article of clothe inwards improver to tear.

How inwards the wide reason of sports are any of these insurable risks? Well, obviously, similar a shot they all are, which offends my sensibility as an insurance purist.

But similar a shot I wish to add together 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).