Insurance
Insurance is the system of protecting yourself against loss, damage, or other misfortune by paying a regular sum of money to an insurer.
The theory is that although you may not be able to afford to replace an item, by making regular payments (premiums) to an insurance company, that company guarantees to pay a lump some if the worst happens. The insurer gambles that on average the total of payments made will exceed the amount payed out in claims, so putting the insurance company in profit.
Insurance is not limited to possessions - almost anything can be insured against - sickness, loss of employment, veterinary fees for pets etcetera.
In some cases, such as car insurance, it is a legal requirement to be insured. In others, it may be a condition of a contract - for example, most mortgage lenders insist on you taking out insurance on a property they finance.
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