Why Insurance is a necessity

<img src="home damaged by tree.jpg" alt="Home damaged by tree" width="138" height="92">

Damage to your home. Are you insured?

As a policy holder, you transfer the risk of a material loss to your insurance company in exchange for payment. Insurance is your hedge against uncertain losses.

By buying an insurance policy from an insurer you have a promise from the insurer in the form of a contract, to compensate you, the insured, for whatever loss stipulated.

Your insurance policy is the contract that will state the details of conditions and circumstances by which you will be compensated.

Without insuring specified items, you will lose such items if you are unable to replace it from your own pocket. Even if you are able to replace it, you will suffer financial loss. Don’t put yourself in such a situation by neglecting to insure your valuables.

 

Supply the correct information to your insurer

When you complete an application, be sure to supply your insurer with the correct information regarding the items you want to insure. It will prevent you from paying too high a premium or have a claim declined or rejected.

Be absolutely sure that the details of your vehicles are correct eg. type of vehicle, model and make, size etc. Your insurer needs to know about anti theft devices fitted to your car, as it will affect your premium.

The same is important regarding any of your household goods. Size, age and replacement value could affect your premium as well as approval of claims. Do not ever under or over insure.   

 

 Maintain your insurance policy

As you receive your annual policy renewal from your insurer, check all the details of insured property. Supply your Insurance company with new or changed details, if need be. Human error creeps in and could make for incorrect information or even omission of details. Compare to the previous documentation to make sure nothing was overlooked. A few minutes of your time will save you from nasty losses.

Keep a list of serial and model numbers of all insured items for when you have to claim.

Should you replace any household items, let your insurer know. Should you get rid of any item, be sure to have it deleted from your policy. If you add any extras do not forget to have it added to your policy.

It is your duty to get acquainted with the details and instructions regarding claims as reported in your policy. Even the small print. Read all before you sign and accept.

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Ref.: en.wikipedia.org/wiki/Insurance