In some way, everyone is self-insured. You are self-insured whenever you do not have an insurance policy that covers a risk.

For instance, if you’re renting and don’t have renters insurance, but you go to the store and buy a stereo without realizing it, you’re self-insuring the stereo. Accepting full responsibility for the safeguarding of one’s assets and, consequently, the financial risks associated with potential losses, such as being robbed, is self-insurance.