You would go uninsured rather than get catastrophe health insurance? You do realize that in America an uninsured trip to the emergency room with trauma means bankruptcy.
Farmers hedge risk for the same reason. A cash crunch could put them out of business. But now that I think about it I can't guess what this weather insurance offers farmers that the commodity futures markets don't.
I think you hit on the breaking point for me. The point is even if I went bankrupt I could come back. But if I cant afford the surgery that saves my life, there's no coming back (that I'm aware of). So yes, when I travel abroad I do buy health insurance. But I dont carry tenants insurance (for my possessions) or buy other insurances... I guess if I were so leveraged like a farmer I'd have more fear. But i have almost exactly $0 debt at any given time meaning even if I were to lose my job, I'd be fine.
If I had 4 kids and a mortgage and a tractor payment and... and.. debt and leverage, I guess I'd be a lot more worried.
Farmers hedge risk for the same reason. A cash crunch could put them out of business. But now that I think about it I can't guess what this weather insurance offers farmers that the commodity futures markets don't.