AOM 4

This chapter of the Ascent of Money talked about insurance, different types of insurance and the history behind it. Scotland was the first country to have insurance and that type of insurance was life insurance. It was created primarily for widowed women because at the time women were not as often a part of the workforce. Life insurance allowed these women to be financially stable if their husband passed away. Life insurance considers many things in order to calculate the amount of money and profit. Things like age, gender and occupation were all factors. 
Life insurance was the first, but there are countless types of insurance. From flood insurance to car insurance, anything can be insured really. In its essence, insurance is something you can buy to protect yourself from losing money. One type of insurance that has had a massive effect on my life is flood insurance. Flood insurance is a type of property insurance that deals with property loss during a flood. From the time I was four years old to the time I was 16, I lived in one house. Throughout those 12 years, that house flooded five times, so I guess you could say my family has had a good deal of experience with flood insurance. The fifth and final time that house flooded was during Hurricane Harvey and we lost it all together.
 The first four times our house flooded, flood insurance was great because we were able to get the amount of money we needed and used that money to make improvements, replace possessions and make  renovations to the house. But those were relatively small floods and the water in the house never exceeded like three feet. However when Harvey came, the amount of damage that occurred exceeded the maximum benefits available under flood insurance policy. Therefore, we lost the house. 
As you can see flood insurance has had an impact on me and my family and really goes to show how important, although complex, insurance can be.

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