Let me

Let me pose a question to you.

Let's say you own a $200,000 house free and clear.

Let's further say that you would like fire insurance. Just in case you are a klutz in the kitchen, for example.

So you sit down and write yourself a fire insurance policy. You promise to pay yourself $200,000 to rebuild your house if it burns to the ground.

You then put your "insurance policy" in the safe and pat yourself on the back - you're insured!

Now, you want to re-do your kitchen and add a pool, so you go to the bank to get a mortgage to finance those improvements.

The mortgage company would accept your self-written policy as proof of insurance, right?

Oh wait - they'd call that fraud?

Well gee, what's this then?