Comment by runeks

I'm no insurance expert, but I know that insurance usually doesn't cover what's called force majeure — ie. "great forces" such as natural disasters. That's because insurance doesn't work if all insurees (or a large proportion) need to be compensated at the same time.

So my question is: is it even possible to insure against these events — e.g. hurricanes, forest fires, earthquakes — given that all insurance takers may need to collect compensation at once (in which case the price of a house insurance would need to be at least the same as the price of a new house).