Farm Insurance

[AlbertaFarmer5]

The reinvestment question you asked isn't the same answer you gave Tweety regarding time value of money you've lost storing grain for years upon years and then not selling last spring when there were record prices.

I would argue that it is the same investment. Using the savings ( in this example the savings of not paying insurance premiums) to invest in grain inventory. Grain inventory being one of the most liquid assets a farmer could own, it can easily be liquidated in the event of an uninsured catastrophe. No transaction fees, no middlemen, no commissions, no confrontations with adjustors, no increased premiums due to making a claim, no deductible, no being limited to repairing the issue with insurance approved vendors to their standards and on their timeline.

[AlbertaFarmer5]

False premise perhaps?
They collect from many but pay out a few.

Yes, socialism within a capitalist industry.

[blackpowder]

No because they are legally bound to all they underwrite.

[AlbertaFarmer5]

Insurance companies invest primarily in bonds. The average annual return of bonds in the last decade is 1.6%.
Out of that remove all of the administration costs, and profit, and that is what the average insurance customer should expect to see as an ROI on their investment.
What has been the annual ROI on capital invested in your own farm over the last 10 years?

[blackpowder]

I'm sorry you're losing me.
Are you suggesting I can self insure investing my premium money elsewhere?

[AlbertaFarmer5]

I'm sorry you're losing me.
Are you suggesting I can self insure investing my premium money elsewhere?

Yes. That is exactly what I am suggesting.
Better yet, invested in what you know best, your own business.

[AlbertaFarmer5]

A big part of the difference in opinion on these matters comes down to a topic we have been discussing a lot recently. Personal responsibility.
Insurance of any kind literally removes the impetus to take preventative measures, and be responsible for yourself. Just look at our health systems.
How many buildings would be built (and rebuilt over and over again) in flood zones and hurricane zones if they didn't have insurance?
I shovel off roofs if they get too much snow. Park vehicles under a roof when conditions are ripe for hail storms. Do our best to prevent fire hazards. Don't see the need to repair every minor cosmetic damage. Grain bins don't get a chance to blow over when they're full of grain.
How often do you hear of someone wishing for, or celebrating an insurance payout? That is certainly not the intention of the product. How many vehicles and RVs have been written off from hail damage and are still being driven years later. All insurance customers get to pay for those claims.
With some notable exceptions, the insurance industry is not great at rewarding self-responsibility, or punishing the opposite.

[sumdumguy]

Many expensive/almost new RV’s written off due to rodent damage. Guess no one wants cats around anymore.

[AlbertaFarmer5]

Many expensive/almost new RV’s written off due to rodent damage. Guess no one wants cats around anymore.

I hadn't heard that one before. But if that is true, then it's another very good example of the personal responsibility side of the issue. I wouldn't have even guessed that a preventable loss such as rodent damage would be insurable. So now, responsible RV owners premiums go to paying for this?

[Partners]

Neighbor had 2 fifth wheel camper trailers replaced because of mice damage..