In description, insurance can be said to be the means by which is shielded from loss in terms of finances. The basics of insurance include the insurer and the insured, the insurer sells the insurance cover while the insured buys the insurance cover. The insurer and the insured must come to terms that the insurer will compensate the insured if he undergoes financial loss due to some unforeseen calamity if he, the insured agrees to pay some agreed amount of money for some agreed amount of time.
Sports insurance, car insurance, caravan insurance, boat insurance and travel insurance are some of the basic types of insurance that we have around. The rising cost of living has made it necessary for people to take up insurance for fear of loss of whatever they have built up.
Home insurance, also known as homeowners insurance is any type of insurance that covers a person’s personal residence. Some of the things a home insurance covers include the house itself, the contents of the house and losses resulting from earthquakes, floods or any other known disaster. Many people work very hard to support their families and the knowledge that whatever calamity comes along, their family members will always have a home makes these individuals feel at peace.
In life insurance, the two parties conclude that a designated beneficiary will be paid a said amount of money once or regular if the assured in turn agrees to pay the assurer an agreed sum of money. Life insurances are very important as beneficiaries who maybe the children of the assured are positive that their future is well taken care of. The policy can be also used as a security hence enabling the assured to take loans to do other businesses that may profit him.
Lastly, insurance taken for road vehicles such as cars, trucks, motorcycles and buses is usually referred to as auto, car, motor or vehicle insurance. The basic use of this type of insurance is to provide protection in financial terms against any physical damage resulting from traffic collisions. Financial protection is also offered when physical damage occurs to the vehicle as a result of theft after the occurrence of the accident.
To protect themselves against all kinds of disasters and calamities present, awareness should be created about the excellent services insurance provides to its users. There are some special cases whereby the assurance policy is altered in that instead of waiting till the assured dies, payment is made to him after some agreed time, this can be seen as a saving tool. Insuring your properties is the best way to protect them.