General Insurance is the way to prevent household financial from risk.

Can we predict the risk? can we solve financial problem when risk hit us?
We can't predict earthquake, vulcano erupsion, tsunami, or criminal cases. All that mentioned before can be called it as risk. The risk is the combination of the probability of an event and its negative consequences. According to http://www.preventionweb.net/english/countries/statistics/risk.php?cid=80, earthquake had a great impact in Indonesia. It could make GDP losses around US$79.13 billion . Can you make a fast recovery when it happens to you? That's why we need general insurance. Insurance can recover your financial loss. You manage your risk when you buy insurance. You'll be a risk manager for yourself.
What kind of insurance that we need? The first that you can do is identify your risk and then classify your risk based on likelihood of risk occuring and impact of risk. Choose the risk that can make high impact but low likelihood or high impact and high likelihood. Call your insurance agent to ask what is the appropriate insurance. How much budget do we need for insurance? In my opinion you must spent maximal 5-10% from your income.