House insurance is something we all have to safeguard against disaster. Now, keep this theme in mind as I attempt to spin a tale of possible horror and mayhem.

Let's suppose there is a house and it sits on a potential earthquake zone. Inside the house lives a normal everyday family. There has never been an earthquake on this ground before, but experts warn that it could happen.

Now, let's suppose you approach an insurance company and you make moves to take out an insurance policy on the house. Remember, you do not live there. You just know it sits on a potential earthquake zone and that there could be an earthquake. If there is and if the house is destroyed, you would be able to collect on the insurance policy. True, it has cost you money to purchase this insurance, but you are quite certain that an earthquake will come and you will get to collect.

Now, let's say you mention what you have done to your buddies on the golf course. Being profit seekers, they too approach the insurance company and they too take out insurance policies on the same house that you did !! The insurance company collects even more fees and is quite happy to do so because there has never been an earthquake on the ground where the house sits and as far as the insurance company experts are concerned there never will be. Let's suppose your buddies tell a few friends about their strategy. These friends make their way to the insurance company and they too take out policies on this house. Cha-ching!! Cha-ching!! The insurance company has made a serious amount of money selling these policies.