As Ron White Says: You Can't Fix Stupid. You Can't Insure It Either

Services for Real Estate Pros with Cerium Learning

One of comedian Ron White's funny punch lines is:

You can't fix stupid!

Insurance can help people recover from many things including some things that involved poor choices. But insurance doesn't cover everything and stupidity isn't one of them.

There are specialty insurance companies out there that will write coverage for things I wouldn't even imagine possible. But stupidity isn't one of them. 

One of the fundamentals of insurance is Risks Must Be Insurable. Stupidity isn't one of them.

To help determine if a Risk is Insurable use this mnemonic:


 Calculable - Someone must be able to Calculate the risk involved

Affordable - The premium must be Affordable, especially compared to the potential loss

Non Catastrophic - This is from the insurance company perspective. Losses that could result in billions of dollars of loss from a single incident or is too difficult to predict. For example War is considered Catastrophic and therefore is not insurable (from an insurance company).

Homogenous Exposure Units - read those words carefully. What that means is there must be a sufficiently large enough group of similar risks to be able to determine what the likely hood of a loss is to any particular unit. Another way of thinking about this is called the Law of Large Numbers or the Mathematical Principle of Probability

Accidental - The loss must be Accidental in nature. Intentional acts are excluded.

Measurable - the actual loss must be Measurable, usually in dollars.

 Now that we have this list we can see for ourselves that stupidity just isn't one of the categories.

Mr. White, you are absolutely correct. Insurance Can't Fix Stupid.

Have a great holiday weekend but don't get to close to the squirrel; you might catch it's stupid.

Rick Trowe

holly lynch

as one redneck to the chow! LOL

Aug 29, 2008 11:14 AM
Michael Stephan

Rick -

I got one for ya. My neighbor cut 60 trees on my property, and then got his his insurance cover the

damage, replanting, etc. Lucky us. The bill was over $100,000

Maybe you can't fix stupid all the time. but this is one that will may leave you shaking your head as much as it did mine.

We've since moved to a new house with a few less neighbors!



Aug 29, 2008 12:13 PM
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy Rick

Will I was just out riding around the community, and wanted to stop by and say thank ya.

You sure gave some really good points for folk's set down and think about.

I'll stop by again soon.

God Bless America

Aug 30, 2008 01:00 PM
Not a real person
San Diego, CA

Hey, Rick. You and I could become billionaires if we can come up with an insurance policy to insure stupid. Wanna try? I might be able to work with you if you're not one of my Big 12 foes. LOL

Aug 31, 2008 09:32 PM
Rick Trowe
Cerium Learning - Tulsa, OK
Go With Trowe

Russel I probably am 1 of your Big 12 Foes. When it comes to football it's BOOMER SOONER; I do root for OSU Cowboys as well. Too bad about the Aggies in game 1. Seriously, though I really enjoy your posts and am a subscriber.

Sep 02, 2008 05:39 AM
John Tooley
John Tooley Insurance Agency - Owasso, OK

Rick, great way of pointing out to view an insurance policy. Somewhere once before it seems someone taught me that mnemonic.  Oh yeah, that was you... keep up the good work.

Sep 03, 2008 02:16 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Rick:  I love Ron White.  And nothing can fix stupid.  Not a home warranty.  Not home owners insurance.  Nothing. 

Sep 11, 2008 04:18 AM