Benefits of Insurance
The process of risk management where a person, organization or agency are protected from unexpected financial losses from a risk that may occur. There are various companies that deal with insurance covers known as insurance company, insurer as well as an insurance carrier. The policyholder or the insured refers to an individual or organization that takes an insurance cover. The role of the insurer is to compensate the insured in times of unexpected risk that results to financial loss. In case of a loss from occurring, the insured is compensated using the monthly or annual premiums they pay to the insurance company to cover for a given risk. 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. There are various principles that govern insurance such as benefit insurance, indemnity, utmost good faith, insurable interest, proximate cause, subrogation, contribution as well as mitigation. 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. Auto insurance aims at covering risks causing financial losses arising from traffic collision or any other incidence in a vehicle that causes physical damage or even bodily damage. Some auto insurance can also cover against theft of the auto, natural disasters that may affect the vehicle as well as collision of the vehicle with stationary object. Risks that are covered by an auto insurance is property damage, the party insured, the vehicle insured as well as other third parties such as other cars, property, and people. The monthly or annual premiums charged on the auto insurance depends on the type of the vehicle, its value, the age of the vehicle among many others.
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. Home insurance also covers against accidents that may occur in a home and the property. To ensure proper coverage using the home insurance, one should look for a suitable insurance provider. Having a home insurance cover will ensure that financial lenders have faith in giving an individual a mortgage. Another type of insurance cover is the boat insurance cover that cover any financial losses that may occur from destruction and damage of cargo, ships, and terminals. The property covered by the boat insurance includes that property both offshore and onshore. Having either a home, boat or auto insurance cover is very beneficial as it enables one to have security against risks that may occur in the future.