What is an example of a non-insurable risk?

Non-insurable risks are those that cannot be covered by insurance policies, typically because they are speculative in nature or do not meet the criteria for insurability. In this context, gambling losses are a prime example. Gambling inherently involves risk and uncertainty; the outcome is based on chance rather than an unexpected event impacting physical property or health. Insurance is designed to cover unforeseen losses due to accidents, natural disasters, or other events outside an individual's control. Since gambling losses result from voluntary participation and can be anticipated to a certain extent, they do not fall within the realm of insurable risks.

In contrast, soil erosion, theft, and fire damage are examples of risks that can be insured. These involve specific events or conditions that can lead to measurable financial loss, making them suitable for coverage under insurance policies.