Mutual aid versus insurance

Slowly but surely the majority of the victims of the Nappanee Tornado will be faced with the reality of insurance adjusters, co-insurance, deductibles, depreciation, replacement cost, itemization, and exclusions; that is unless the victim is a member of the Amish sect. The national headlines focused on the damage and destruction in Nappanee that included Fairmont Homes, Gulfstream RV, Franklin Coach, Dairy Queen, Taco Bell, BP Gasoline, South Side Christian School, and nearby church plus hundreds of houses.

In an interesting switch in focus the media bypassed the numerous Amish farms and businesses that were destroyed as the funnel skipped across a twenty mile path that included much of rural Marshall County to the southwest. The road to recovery from the destruction is split between the only two systems of insurance mankind has invented: mutual aid and shared risk insurance.

The Amish rely on mutual aid which means losses are recovered by one's neighbors rushing to the rescue. This photo of a partially destroyed Amish house that by Sunday morning was fully shingled, repaired, wrapped with new windows and awaiting siding is in sharp contrast to everyone else awaiting the adjuster's visit and ensuing arduous process of proving one's loss and meeting the contractual requirements of the insurance contract between the insured and the insurer, a simple business transaction.

Which system is best? Neither. They each have their advantages.

The City has established the Nappanee Tornado Victims Fund through Lake City Bank and donations can be mailed to City of Nappanee, P.O. Box 29, Nappanee, IN 46550. Contributions may be made by Visa or Mastercard at the Elkhart County Community Foundation website.