[Daisydog]

[ QUOTE ]
Gambling is wagering something of value on an undetermined event. Buying insurance is gambling that something bad is going to happen to you. The insurance company is betting it doesn't.

[/ QUOTE ]

In gambling, your financial outcome is dependent on the undetermined event.

When you buy insurance, the financial outcome is the same whether or not the undetermined event occurs. That's the whole point of insurance. If your house gets destroyed, the insurance company indemnifies you, bringing you back to the same financial position you would have been in if the house hadn't been destroyed. Once you buy insurance, you don't care what the outcome of the undetermined event is because it has no impact on you (from a financial perspective, anyway).

In contrast, when you DON'T buy insurance, then your financial position is dependent on the undetermined event, just like it is in gambling. Without insurance, you will be in a much different financial position if your house gets destroyed compared to if it doesn't get destroyed.

When you don't buy insurance, you are wagering the value of your house on the undetermined event (whether or not is will be destroyed). When you buy insurance, you are not.

Insurance exists for people who don't want to gamble. Instead, you transfer the "gamble" to the insurance company.