The entire reason we buy insurance is to cover events like that, that one would be unable to cover personally.<p>Of course they can cover. It&#x27;s a matter of how much you pay for your insurance, and to a large degree how much they company saves up. In the case of a hailstorm it&#x27;s not because they cannot pay, it&#x27;s because they don&#x27;t have proper savings to cover it. A hailstorm with fist size hails is not going to cover the entirety of California, so it&#x27;s very manageable.<p>An example, when a fireworks factory in Denmark exploded the total claim of material damage was 750 million DKK (113 million USD). The vast majority was covered by insurance companies, even though that would fall under correlated risks. One of the way insurance companies handle this is to have a joint fund with other insurance companies (I think this is government mandated), where they can withdraw in cases like this.