Self Insurance

Self insurance is one choice as the means to provide financial protection in case of a loss to property or person. This is done through a group or organization. The organization will pay all claims up to a specified amount. This amount is determined by the ability of the organization to fund the amount of the losses.

It is not the only choice. You can partially insure and assume the balance as a personal risk. You can use other methods to protect your property and use the premiums you would have paid as part of an insurance "reserve" to cover future losses.

This could the be the choice for you when the amount you save in insurance premiums is greater then the cost of the estimated loss. Each situation is different and you should carefully consider all your options.