Insurance against adverse events that you can't prevent is effective in safeguarding your wealth only if you're motivated and able to behave prudently in avoiding or mitigating remaining risks. Despite the dreadful non-financial consequences of having your home flooded or your savings jeopardized, the feeling of "I'm insured" can make you feel empowered to pursue your immediate convenience or perceived advantage--and take avoidable risks because "I'm insured."