Flood insurance in particular isn’t run by business in the US; it’s underwritten by the federal government, and has been operating at a loss for quite a while. The example in this story is somebody who while they signed up for it, experienced damage before the policy went into effect (there’s a 30-day waiting period to start)
Homeowners insurance tends to actually pay out when you have individual uncorrelated failures (eg: house burns down due to electrical system failure) which is what’s it’s designed for. Having that around makes buying something as expensive as a house practical.
Flood insurance in particular isn’t run by business in the US; it’s underwritten by the federal government, and has been operating at a loss for quite a while. The example in this story is somebody who while they signed up for it, experienced damage before the policy went into effect (there’s a 30-day waiting period to start)
Homeowners insurance tends to actually pay out when you have individual uncorrelated failures (eg: house burns down due to electrical system failure) which is what’s it’s designed for. Having that around makes buying something as expensive as a house practical.