Benefits of Insurance
A risk is likely to affect an individual, business, organization, as well as an entity causing a financial loss hence insurance cover, will help reduce the impact of the loss. There are various companies that deal with insurance covers known as insurance company, insurer as well as an insurance carrier. An insurance cover was given to an individual, company or organization who can be commonly referred to as insured or policyholder. The role of the insurer is to compensate the insured in times of unexpected risk that results to financial loss. The insured is required to pay premiums either on a monthly or annual basis to the insurer which will be used to compensate him/her in case the unexpected loss occurs. The insurance will, therefore, pool the funds from different individuals or organization which will be used to pay the one who may experience a loss that is covered. Benefit insurance, indemnity, utmost good faith, insurable interest, proximate cause, subrogation, contribution, and mitigation are the various guiding principles in insurance. An individual or organization can take various insurance covers such as for an automotive, a home or even a boat.
Insurance that covers trucks, cars, motorcycles as well as other road vehicles is known as auto insurance. The auto insurance covers all risks that are likely to occur from traffic collision or any other incidence in a vehicle that causes physical damage or even bodily damage leading to financial losses. Theft of the auto, natural disasters that may affect the vehicle as well as collision of the vehicle with stationary object, are some of the other risks that can be covered by an auto insurance. Property damage, the party insured, the vehicle insured as well as other third parties such as other cars, property and people are some of the risks that auto insurance covers. The type of the vehicle, its value, the age of the vehicle among others are some of the factors that influence the value of premiums for the insurance cover.
The insurance cover that covers damages and losses to a home or assets that may be found in the home is known as home insurance. Accident occurrence in a home is also a risk causing financial losses needs too be covered by the home insurance. A reliable insurance company is likely to enable proper coverage using the home insurance cover. Home insurance is also very important when one is getting a mortgage for a home as it is one of the requirements to lend it from financial lenders. Boat insurance is also important as it helps cover any financial losses that may occur from destruction and damage of cargo, ships, and terminals. Boat insurance covers property that has been exposed onshore and offshore. Mitigation of future risks and having security against uncertainties is the major benefit of home, auto, and boat insurance cover.