Portable Generator Insurance?
Anybody insure their portable generators? Talked with State Farm today and am trying to figure out what the best option is. A personal item policy (similar to insuring a watch) is one option that ha...
Forum Discussion
rexmitchell wrote:
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.
Not only is the likelihood of theft an issue, but the small pool of those seeking such coverage is also a concern. Insurance companies make their money by spreading out the risk to the point that it is statistically justifiable. They may lose out on a claim here or there, but the vast majority of participants will spend more on premiums than they will receive in benefits (which is why, in general, the public 'loses' on insurance).
When there aren't enough people who need coverage, however, the premium gets to high to be viable for the small group seeking coverage.
Generators are easily stolen, high cost, and used by a small group of individual consumers (I'm assuming commercial applications would be covered in other ways). This is a lose-lose scenario for insurers. So, yes, no surprise at all that some don't want to issue coverage.
