Insurance

"Insurance" in poker refers to a side agreement when one player pays another player a certain amount in exchange for a guarantee of winning a certain amount of money regardless of the outcome of the hand.

What is Insurance in Poker?

In poker, Insurance is a side agreement between two players during a hand. One player agrees to pay the other a certain amount of money, effectively insuring their hand. In exchange, the player who took out the insurance is guaranteed to win a certain amount of money regardless of the outcome of the hand. This is often done when one player is a heavy favorite to win the hand but wants to mitigate the risk of a bad beat.

Do Casinos Offer Insurance?

Insurance is not a part of the official rules of poker and is generally not allowed in casinos or formal poker rooms. However, it may occur in private or home games. The purpose of insurance is to reduce the volatility and luck factor in poker, ensuring that a player who has a strong hand doesn't lose a large amount of money if they get unlucky.

So while Insurance is generally not offered in casinos for poker, Insurance deals can be offered and made between players in an unofficial capacity. On sites where Insurance is offered, it's genuinely considered to not be good to take it. This is because the sites offer less value back than the equity of your hand.

Examples of Insurance

[*] A player has a flush draw with one card to come. Their opponent offers them insurance, agreeing to pay them a certain amount if the flush doesn't complete, in exchange for a portion of the pot if it does.
[*] A player is all-in with a set against an opponent's straight draw. The player with the set takes out insurance, agreeing to pay the other player a fixed amount in exchange for being guaranteed a certain payout regardless of whether the straight completes.
[*] Two players in a high-stakes cash game agree to take out insurance on a large pot. They negotiate a deal where one player will pay the other a fixed amount, ensuring that they will win a certain amount of money no matter what cards come on the turn and river.

Insurance FAQs

What is 'Insurance' in poker?

'Insurance' in poker is a side agreement between two players during a hand. One player agrees to pay the other a certain amount of money, effectively insuring their hand. In exchange, the player who took out the insurance is guaranteed to win a certain amount of money regardless of the outcome of the hand.

Is 'Insurance' allowed in all poker games?

No, 'Insurance' is generally not allowed in casinos or formal poker rooms. It may occur in private or home games.

Why would a player take out 'Insurance'?

A player might take out 'Insurance' to reduce the volatility and luck factor in poker, ensuring that they don't lose a large amount of money if they get unlucky, despite having a strong hand.

Does 'Insurance' change the official outcome of a hand?

No, 'Insurance' doesn't change the official outcome of a hand. It's a side agreement between players and doesn't affect the actual play of the hand or the official results.

Can 'Insurance' be taken out in tournament play?

While it depends on the specific rules of the tournament, 'Insurance' is generally not allowed in tournament play.