Insurance For Protection Against Financial Losses
Whether you are a single person, a family of four, or a large corporation, it is always good to carry some sort of insurance. Insurance can provide protection from a variety of unfortunate events including injury or death. Car insurance is especially important if you drive a vehicle that is considered a risk due to the likelihood of accident or fire. Your auto insurance can also offer protection against theft, fire, and other covered events involving your automobile.
When you take out a life or property insurance policy you are taking out insurance that will pay for the cost of living for your loved ones in the event of your untimely death. Your beneficiary will receive whatever financial benefits are awarded to them from your insurance policy in the case of your death. If you have a mortgage or rent a home you may be able to collect on the property damage caused to your home by your auto insurance policy as well.
One of the most costly disasters that could happen is a flood. Water flooding can occur in many forms and can be caused by any number of factors. For example, heavy rains can cause rivers to rise and flood farms and land. Sudden flooding can occur when a burst pipe bursts in your home, a burst water pipe can occur in a storage tank below your house, a natural disaster such as hurricane, tornado, tsunami, or lightning strike can cause a flood in the area. In order to take advantage of your flood insurance you must live in a designated flood zone.
When you purchase flood insurance coverage you should buy a policy that has an expiration date. Your insurance coverage will lapse if you do not take proper precautions to fix the problem after it occurs. The policy will usually have a waiting period in which you must safely fix the problem or your coverage will lapse. If you purchase a policy that does not include a waiting period then your property and belongings could be damaged more severely than if you had purchased a policy with a waiting period. The cost of the additional flood insurance coverage will also need to be paid at this time.
You should know how much insurance you actually need. To determine the amount of insurance you actually need you need to multiply the total cost of your property (including the building and contents) by the actual cash value (ACV) of your items. This will tell you how much insurance coverage you are going to need. If you have flood damage to your building and contents the cost of your insurance will be based on the actual cash value of everything damaged. If there is flood damage to your home and the contents of your home are not damaged, you can typically replace the items with a similar price or less than the cost of replacing them with new items.
If you own a home you will need to get homeowners or renter's insurance to cover damage caused to your property from fire, flood, lightning, vandalism, theft or malicious mischief. If a visitor to your home sustains injury or damages anything in your home, you may need renters insurance to cover the cost of their repair. Many times these policies will also cover you in the case of theft.
Flood insurance provides property owners with financial protection against floods. Many times this type of coverage is required by law for renters and homeowners alike. The expense can be expensive so make sure you are well insured and understand the limitations of the coverage. Remember that it is better to be adequately insured against flooding than it is to be inadequately insured. Your landlord can offer you flood insurance on a rental property.
If your business suffers a loss due to a fire or a flood, you may be able to recover some or all of your losses from stock certificates held by the insurance company. Insurance companies will often give you a certificate of losses when you file a claim for your flood insurance. This is a record of all of your property's financial losses. If you are injured in a flood and you use the certificate, you can prove that you were not the main beneficiary and that the other beneficiaries were actually responsible for the loss.
This content reflects the personal opinions of the author. It is accurate and true to the best of the author’s knowledge and should not be substituted for impartial fact or advice in legal, political, or personal matters.
© 2020 Samuel Grant