The process of risk management where a person, organization or agency are protected from unexpected financial losses from a risk that may occur. Entities that provide these insurances are referred to as an 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. Compensation in times of unexpected financial loss from a risk is done by the insurer to the insured. 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. To helps compensate, the insurance company collects funds form various individuals or organization into a common pool. There are a number of principles that act as guiding measures in insurance benefit insurance, indemnity, utmost good faith, insurable interest, proximate cause, subrogation, contribution as well as mitigation. There are various insurance covers that one can take to protect either their auto, home as well as a boat.
There are insurance covers that are meant for 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. 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. 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. Premiums charges for an auto insurance can be determined by the type of the vehicle, its value, the age of the vehicle among many others.
Home insurance are insurance cover that covers damages and losses to a home or assets that may be found in the home. 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. 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. 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.