Did they have insurance in the Old American West? Movies show banks going out of business and horse rustllers

Question

being lynched. Why would that happen if banks and horses were covered by insurance?

Answer 1

They weren't insured. There wasn't insurance - it didn't become popular in the US, until the early 1800's - and then, only in cities & towns, on buildings, for FIRE LOSS. You used to pay your premium, then you'd get a "firemark" emblem to hang on the front of your house. If you had the emblem, you'd get priority for firefighters.

Answer 2

They didn't have insurance. Bank deposit insurance came in the 1930's after the bank failures at the start of the great depression.

Early fire fighters were not salaried public employees. The got their money in rewards from grateful property owners and, especially, from insurance companies, hence the reason for the firemarks.