Insurance Companies are not allowed to take a loss, as far as they are concerned. They will fight making a payment for a mishap, tooth and nail, or until one gives up. I could tell you many true stories, some that would make your hair stand on end, but I ll just relate what happened to me. First lets analyze the function of insurance. The function of insurance, as far as I can see, is to protect one from the cost of disasters.
Cost is the key word.
You continue to pay into a Company that provides insurance against the loss of all your assets because of an unforeseen mishap. In other words the insurance companies are betting you, with your money, that nothing will happen to you. Take auto insurance as an example. While I lived in New Jersey, outside of Philadelphia, where I worked, I was required to have auto insurance like everyone else. I paid dearly for that auto insurance because New Jersey has one of the highest insurance rates in the country.