Portable Generator Insurance?

valhalla360 wrote:

rexmitchell wrote:

My thinking was this, when initially considering this I was thinking the cost would be that of a personal article policy. This runs about approximately 12$ a year per thousand dollars of insurable value. So in this case, if they would have covered it, it would have been $24 dollars a year. I'd pay that to insure the generator and I guarantee you it would die before I even came close to paying out the total value of it. This isn't an option since they won't insure it but that would have been worth it had they been willing to insure it in the same manner as they do jewelry, art, etc.

And I will GUARANTEE that ON AVERAGE, you will pay more for insurance than you will get back from insurance payouts. If this is not true, the insurance company will quickly be out of business.

I suspect, you are being confused by the small dollar value of the item insured and the dollar cost of the insurance but not looking at the big picture...which is what insurance actuaries look at.

I’m not confused about it, we insure jewelry at the rate listed above. It would take many years before the cost of insurance equaled the replacement cost...like close to a lifetime. A generator is probably 1000x more likely to get stolen vs a wedding ring or watch so it makes sense why they won’t let me insure it as a personal item.