A. To reduce the probability of having your house burn down

B. To spread the financial risk of your house burning down

C. To make money if your house burns down

D. To become less risk-averse

 

  • ChrissyL 5:15 pm on August 29, 2010

    B.
    Having insurance dosent reduce the probablility..your house wont have more of a chance or less of a chance to burn down just because you have a policy in place.
    You don’t make money if your house burns down..you just recoup some loss.
    Having homeowners insurance spreads the financial risk, because it spreads it just from you to someone else. The financial aspect of your house burning down is now spread to your insurance agency as well.

  • DeeDee 5:15 pm on August 29, 2010

    none of the above. Maybe c