Why might the amount recovered from an insurer, not cover the full cost of an event?

Why might the amount recovered from an insurer, not cover the full cost of an event?

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Because insurance policies often include ‘deductibles’ (also known as ‘excesses’). This is a sum of money which the insured party is required to pay towards the cost of a risk event. They ensure that the insured party shares the exposure to risk with the insurer.