Insurance policies in Waupun, Oshkosh, Plymouth, Ripon WI

The insurance model requires many participants with a low % of claims

We all face risks and insurance is one of the best risk management strategies and tools we have at our disposal. Apart from life insurance, insurance is not about gain or making a fortune. It is about loss recovery – insurance whether car insurance, property insurance, travel insurance or business insurance simply means you won’t lose everything when misfortune knocks on your door. If you want to protect yourself against severe loss in Oshkosh WI, Plymouth WI, Ripon WI or Waupun WI then you should get proper insurance cover from Behnke Insurance.

Insurance is possible when many contribute to cover the few who suffer great loss. The concept of insurance has been around for a long time. It started with the concept that you should not put all your eggs in one basket. Think back to the mariners of the old days who sailed ships with precious cargo across the oceans. They would split the cargo across different ships so if one went down, all the cargo would not be lost. Insurance is similar, but just a lot more complicated and sophisticated.

A carrier will issue you with an insurance policy which means the carrier will absorb the financial loss should you suffer loss. In return the carrier will require you to pay a monthly premium. This model only works if there are enough people who participate. The idea is that something bad will happen to a few who participate, but not to the majority. The insurance company makes money because millions participate and contribute ad most will never need to make a claim. You participate because there is always the risk that you might be one of the unlucky few and that risk is too serious to ignore.

There have been events such as large scale and devastating flooding that has turned the model on its head. That is why most carriers don’t offer flood insurance anymore as part of home insurance. As the world turns and disasters become more common, the insurance model might well be in for more surprises.