

You Don't Understand Insurance - stanleydrew
http://benton.io/personal/2015/05/13/you-dont-understand-insurance.html

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sveiss
One thing which is missing from his rule is the cost of losing multiple things
at once.

For example, if I were to lose my coffee maker I could replace it easily. If I
were to lose my computer, replacing it would be financially painful, but
possible.

If I were to lose my furniture, clothes, computers, television, cooking
utensils, appliances and my coffee maker at once -- in a fire, for example --
dealing with all of that at once would be an issue. So I have home contents
insurance with a fairly high excess, but I wouldn't expect to claim on it for
any one item.

