The Relation Between Risk and Insurance

Man pulling a block out of towerAll insurance, from homeowners insurance for your home to health insurance for your body, is about chance. What is most likely to occur, and how often it can occur. The types of general insurance out there cover what they cover because those are the most likely risks that can occur. The frequency and cost to compensate for the risk explains how much you pay on your insurance premiums. By understanding the relation between risk and insurance, you get a better appreciation of insurance and how to reduce its costs. [Read more…]