> That's a fool's bet to say "I will pay you X amount of money if it floods" when it is guaranteed to flood sooner or later. That amounts to charity, not insura

> That's a fool's bet to say "I will pay you X amount of money if it floods" when it is guaranteed to flood sooner or later. That amounts to charity, not insurance. The bet is more like, "I will pay you X amount of money if your damages from flooding exceed your deductible within the next year." It's not at all given that it will flood at all this year, or that your losses will exceed the deductible. It's true that it would require substantial diversification or re-insurance, since flooding is a clustering event.