Odds are that if you forget to pay a premium and your insurance lapses, that is the exact time catastrophe strikes. I have a theory that the more one insures against a catastrophic event, the less likely the event will occur.
A recent article, States Hit Hardest by Recent Tornadoes Among Least Insured, shows that I am correct:
Many of the states hammered by what’s already the deadliest year for tornadoes in more than half a century have among the nation’s highest rates of homes without hazard insurance despite being among the most twister-prone, data analyzed by The Associated Press shows.
That means the regions that most need the insurance are often the exact places that don’t have much of it. It also means many tornado victims may have a hard time getting compensated for their losses, putting more pressure on the federal government to help even though its assistance is limited by law.
The fallout is on stark display in Mississippi and Arkansas, two of seven Southern states battered last month by twisters. Mississippi ranks second in the nation for the percentage of homes without insurance covering wind damage yet fourth on the list of states that have had the most tornadoes touch down in the past five years. Arkansas ranks fourth for uninsured homes and 10th for being tornado prone, according to the AP’s analysis.
The article also quoted Larry Cox, a University of Mississippi insurance professor who stated another truth about insurance:
I think the general public finds insurance complex, confusing, something they don’t want to think about.
So, people should not wonder why I purchase so much insurance. It is truly a great product. The more you buy, the less you use the product. With that in mind, I buy a lot of life insurance.
Have a great Memorial Day Weekend. Here’s a song to think about while sipping margaritas, slow cooking a slab of ribs, and enjoying the sunshine: