Insurance
What If You Lose Everything?
Insurance is a contract between an individual or firm and an insurance company that provides financial protection to the individual in the case of a loss or damage to properties. These contracts are basically to prevent financial loss to the client or the client’s properties in the eventuality of injuries or death of the insured client of the insured properties.
The insurance company charges the client on a monthly basis, depending on the worth of the properties; these are called deductibles.
Types Of Insurance
There are several types of insurance services available, and any client can find an insurance company ready to do business with. The most common types of insurance are car insurance, health insurance, home insurance, and life insurance. In some cases, a client may request that specific properties be insured.
There are three crucial things to be considered when looking to insure life or properties. These are price, protection limit, and deductibles.
Price: This is the monthly amount paid to the insurance company. This amount varies depending on the kind of property insured, the business’ risk profile, and the client’s history. A client is more likely to pay more if the risk insured against is something that’s prone to happen, perhaps even regularly, or has happened regularly in the past.
Protection limit: This refers to the maximum amount of money an insurance company will pay in the eventuality of a loss.
Deductibles: This refers to the amount the client has to pay first before the insurance company can do anything in the event of a loss. The higher the deductible, the lower the price of the insurance.
Car insurance, also known as vehicle insurance, is one of the most popular types of insurance. Car insurance covers your car in the incident of an accident or theft, all in exchange for a premium. The kind of loss covered in the insurance also depends on the agreement. The auto insurance company can cover the following eventualities, as per the contract:
Damage or theft of the vehicle: The insurance company can pay to cover for financial loss in the eventuality of an accident or the theft of the vehicle.
Liability: The auto insurance company can also pay for damage to other vehicles in an accident or pay for the treatment of bodily injuries to others.
Construction Equipment Insurance
Another type of insurance not regularly talked about but important nonetheless is construction equipment insurance. Construction equipment insurance covers all physical damages to construction equipment, so long as it is not explicitly excluded from the contract. This insurance also covers the cost of replacing this equipment.
There is a clause to all of this, though. This coverage can only be claimed if the damage is not from an act of God or negligence. Acts of God include damage from harsh weather conditions like a storm or a falling tree. What is covered and not covered is typically determined by the agreement between the insurance company and the client.