Lesson 1
How Insurance Works
See how a pool of small premiums pays for rare, large losses, and why it can’t pay for wear and tear.
Predict
Marcus has paid for home insurance for twelve years without a claim. After a wet week, his 20-year-old flat roof starts leaking into the spare room, and the insurer turns the claim down: “wear and tear”.
Why do home policies leave out wear and tear?
Choose a prediction, then select Next to see the answer.