FinanceDogma – Finance, loans, creditcard and mortgages

May 16, 2009

Insurance: Do I Really Need It?

Filed under: insurance — Tags: , , , , , , , , , , , , — admin @ 7:42 pm

There are many different types of insurance, with the underlying purpose being to protect individuals from a host of unseen situations. In most situations this protection will cover individuals by providing money when required, as well as protection from liability, damage and financial loss. Insurance can protect individual’s homes, vehicles and life, among other things. Depending on the needs of the customer, insurance packages can even be tailored to fit their needs.

In certain situations there are some insurance policies that are compulsory. Automobile insurance against personal injury in a number of states is one such example. Insurance coverage can be quite broad and vehicle insurance is not different. As a consumer, you can select between a simple liability policy that pays the other party should you be involved in an accident, but provides no coverage if your own property is damaged.

If you require higher coverage, you might opt to take out a comprehensive policy that will cover damages to the other party’s property and also to your own property, as well as medical expenses. With such a range of coverage and many points of coverage in between, it is generally considered that automobile policies can be varied in nature.

What makes car insurance so valuable is that it covers you in an accident and ensures you are protected in a situation when you may otherwise incur hefty bills for the damages resulting from a collision or other accident. In the worst case scenario you could be up for significant losses both now and even from future earnings to pay for costs. Generally, consumers couldn’t possibly replace the other party’s automobile, and that is before any medical costs are considered in a crash where they are found responsible.

In the case of house insurance, often a lender who has financed the property will dictate a minimum level of cover that is seen to be suitable. Home owners often go beyond this minimum to ensure that personal effects like furniture and personal belongings are protected as well.  Depending on the policy that the owner takes, this insurance can also include personal liability insurance that will protect them if a visitor on the property in involved in an accident or sustain an injury. As with all type of insurance, the main reason for taking a policy is to protect individuals from liability and monetary loss should third parties be injured or cause loss. Home insurance can also help in instances such as fire damage.

In the case of home insurance, one point of difficulty can relate to the incidence of flood. There is usually no guarantee that this is covered in your insurance policy, a point that has caused issues when home owners discover they’re not protected. If you make such an assumption you are potentially at risk of big losses if flooding occurs. If you believe that you need this cover, you should be sure to ask your provider directly if this is included in your policy. Unfortunately, many thousands of homeowners have suffered drastic losses of property and money as a consequence of assuming this is covered only to discover too late they weren’t protected.

There are many other types of insurance beyond personal and property insurance. For those who may need it there are policies that will protect from lost wages should this be necessary; commercial insurance policies suitable of businesses and also specialty policies that will protect high-ticket items of jewellery or art work. Virtually every imaginable coverage is available if needed and if you prefer to have security against potential loss of money, belongings or other assets – then taking out insurance coverage is the best possible solution available.

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