Hacker News Reader

Was the equipment not insured?

This is the underlying point of theft coverage: the realization that even if police investigate a case, they will likely be unable to get the stolen items back.

View on HN

Insurance is just a loan that you prepay small amounts for until you make a claim and then repay larger amounts for.

This is what I always ask in these threads. Most homeowners and car insurance policies cover losses from theft in your home or car, minus maybe a deductible. Isn't this exactly the kind of thing insurance is for?

Insurance doesn't make sense for small losses that you can pay for yourself. If you don't like the feeling of paying for stolen things, you could be your own insurance company instead, putting the regular premium into a savings account that you spend only to replace lost items. Over your whole life, it'll average out. Plus you get the advantage of better aligned interests and no profit skimmed off the top.

What insurance is good for is catastrophic costs that will probably never happen in your life but if they do, they'll ruin you. Things like crashing into a million dollar car or having your house burn down.

Reply on news.ycombinator.com