Don’t let the max coverage of insurance companies limit the amount of cash you keep on hand. They also have very low payouts on firearms and precious metals, unless you pay for costly policy riders. You are going to want to have much more of all these items than your insurance covers.
Look at it this way…..the alternatives are also risky. Keep cash in the bank, and a financial crash may cause “bank holidays” so that you basically lose it anyway. Or a massive disaster may wipe out an insurance company’s ability to honor the indemnification you have paid for. Both are very possible. These are just different forms of loss, or more specifically “robbery.”
For a survivor/prepper, being dependent on an ATM…..ever….is a Real Bad Idea.