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Profit how? You're out a house, which will be rebuilt and insurance premiums?
by refurb 4y ago
Profit how? You're out a house, which will be rebuilt and insurance premiums?
- shagmin 4y agoYou're not paying the premium based on the actual risk, but instead some fixed amount. So if a flood does destroy your house you collect the insurance money to re-build at a cheaper cost than it should've been relative to the risk... kind of like insurance arbitrage. It's still an additional policy, but there's wiggle room to make the policy holder profit.
- refurb 4y agoSo instead of paying $100/month for insurance I might be paying $400/month, so $3600 per year in profit? Seems minor?