As the government is in charge of security, building regulations, town planning, vehicle safety etc… any loss that a resident incurs in Fortunata is insured by the government.
The basic premise is that the government assumes all responsibility for the welfare of its people and to not compensate them for loss would be corrupt of the government.
If an appliance burns out, and the article is outside warranty, the government assumes the responsibility for poor power conditions. If a house burns down, it must be because fire regulations were not strong enough, the building code was too lax or the fire department was too slow in responding – all governmental responsibilities.
If a vehicle is involved in an accident, it was because of poor maintenance programs, poor driver education, poor road conditions – all problems of the government.
If a thief steals goods, it is because of poor education, poor policing and so the government compensates.
The government has the right to re-insure with outside insurers, but private insurance is generally not allowed, as it is seen to be fraudulent in its activities and counter-productive to the harmony of the nation.
On the flip side, willful damage, vandalism and negligence will also be covered by the government, but charges can be laid against the perpetrator under the Treason Act, as this can be seen as a direct attack on the people and the government of Fortunata.
Needless to say, insurance fraud is uncommon.