Insurance
Introduction
For over two hundred years, insurance policies have changed the lives of millions of people worldwide. People and organizations sort out insurance covers to protect themselves from any loss or contingency. Therefore, it is crucial to understand what insurance is and how it is beneficial to individuals and organizations worldwide. Insurance has been described as an agreement offered by insurance companies to protect individuals and organizations financially from losses and contingencies that might occur. There are several types of insurance policies, all of which offer specific covers depending on their interests. Both federal governments and private companies can offer insurance covers. However, several people in the world are not aware or do not get insurance covers. Therefore, this paper will analyze the most common types of insurance policies and discuss how popular they are with the world population. The paper will also discuss why these insurance policies are beneficial to individuals and business organizations
Flood and Earthquake Insurance policies
Just as the name suggests, flood and earthquake insurance policies are treaties offered by insurance policies that protect individuals’ and organizations’ property from losses they might incur from natural disasters. Natural disasters are probably one of the most significant causes of property loss and life in many parts of the world. Studies have shown that close to seventy million people worldwide are affected by natural disasters such as floods and earthquakes in the world. Thus, people who live in places prone to natural disasters are looking to insure their property and businesses from natural phenomena such as hurricanes, floods, and earthquakes, amongst many others. However, flood and earthquake insurance policies are often very costly, and therefore not many people in the world know or even get such insurance covers. Another reason why flooding and earthquake insurance covers are not very popular is that natural disasters do not occur often, and therefore not many people need such insurance covers.
Natural Disasters such as the Indian Ocean Tsunami and the Haiti earthquake have cost world governments and citizens close to four hundred billion dollars in losses and property damage. Flood and earthquake insurance covers are, therefore, very beneficial in protecting both businesses and individuals from such losses. Due to the high cost of flood and earthquake insurance, federal governments often offer such insurance covers to citizens living in areas most prone to natural disasters. Privatized institutions also provide flood and earthquake insurance, but such covers might be costly. Flood and Earthquake insurance policies have been very beneficial in that they provide financial support to people and businesses affected by natural disasters. Both individuals and organizations can recover from such a disaster, depending on several factors described in the insurance contracts. Nonetheless, flood and earthquake insurance covers can protect individuals and businesses from unforeseen natural phenomena. Therefore, it is crucial to creating awareness for people living in natural disaster-prone areas to protect their property and lives from any contingencies.
Scheduled Homeowners Policy
Home and property owners often get Homeowners’ insurance policies to protect their houses and property from contingencies. Such contingencies might include theft and property damages that might occur from fires and other possible disaster. However, homeowners’ insurance policies might not offer protection for all the items that are within a premise. It is due to this reason that home and property owners look to complement their home insurance covers. Scheduled Homeowners policies are a form of home insurance cover that offers clients protection from loss of valuable items within home premises. Valuable items such as antiques, jewelry, art, and family heirlooms that are too costly to cover in a basic homeowner insurance cover are protected under scheduled homeowner insurance policies.
However, such insurance policies are not standard globally since they might be too expensive and for people to afford. Scheduled Homeowners insurance covers are popular amongst wealthy individuals who often keep valuable items in their households.
Despite being unpopular amongst many people in the world population, scheduled homeowners’ insurance policies are very beneficial. Such policies do not only offer protection for houses but also for other valuable items that might be within the house. For instance, people like artist who might have very valuable artworks sored in their houses might need to get scheduled home insurance covers to protect their valuable items from any eventualities that might result in losses or damages. Due to the intricacies of basic homeowner insurance policies, it is crucial for people to understand the limitation of such policies in order to be able to compliment them effectively to meet their need and protect their belongings. Scheduled homeowners’ policies have enabled people to get exclusive and extended coverage on items that might have protected other forms of home and property insurance policies hence very beneficial.
Renters Insurance
Not many people in the world are at the liberty of owning homes or property. Therefore, many people, especially those living in urban areas, rent or lease property and houses. Landlords and other property owners offer their tenants insurance covers in the form of tenant or renters insurance. This particular type of insurance protects the property of tenants living in rented properties or houses from any arising perils or contingencies. However, just like scheduled homeowners’ insurance policies, renters’ insurance might not cover all the items or property in the rented premise. Tenants might need to contribute a certain fee if they want to cover the cost of replacing or reimbursing items or property loss caused by any contingencies. This fee is referred to as a deductible in insurance. However, not many landlords and property are willing to incur the costs of providing their tenants or renters with such insurance covers. Nonetheless, tenants’ insurance is quite popular because of its affordability and the security that tenants’ insurance offers them.
Home break-ins and burglaries have been on a steady increase in countries around the world each year. With such crimes comes increased loss and destruction of property that mostly affects renters and tenants. Renters insurance is very beneficial first because it is affordable; hence, many people might gain such insurance coverage. Renter insurance is also beneficial because it enables people to acquire financial protection to replace or fix any lost or destroyed items in their houses. Despite their affordability, there is a majority of tenants in countries worldwide who cannot get such insurance covers. The reason behind these statistics is that renters’ insurance often require people to make timely deductible payments. However, with increased cost of living and high unemployment rates, renters’ insurance is almost unachievable for many tenants in the world.
Watercraft Insurance
Another type of insurance coverage policy is watercraft insurance. Most insurance policies only protect assets that are located on land. Therefore, property owners who own watercraft and boats get specialized insurance covers that protect the kinds of assets. People with homeowners’ insurance covers often compliment these insurance covers to protect such watercraft as boats, yachts, and water vessels from any contingencies that might occur while the vessels are in water bodies. However, such watercraft insurance policies offer strict guidelines that enable a watercraft owner to be eligible for repairs and replacements if their watercraft is destroyed or even stolen. Watercraft insurance policies are not standard because only a small portion of the world population lives close to water bodies that can support watercraft. There is even a smaller percentage of these people that own watercraft. Additionally, watercraft insurance covers are often deductible; hence might be costly for people to get.
Regardless of unpopularity, watercraft insurance policies are particularly beneficial to the boat and other water vessel owners who either use these watercraft for personal or business purposes. Over the years, fishers and other watercraft owners have significantly benefited from watercraft insurance policies. People such as fishermen often find themselves unfavorable to see that subjects their watercraft to damages that might be too costly for them to repair. Due to elaborate watercraft insurance policies, such people like fishers might get financial protection against contingencies that might meet them while sailing. Furthermore, watercraft insurance policies protect watercraft owners from other incidents such as theft, physical harm, and any costs incurred from lawsuits and government policies.
Umbrella coverage
Despite many insurance covers offering financial protection from unforeseen perils, there are some extreme situations whereby such insurance covers might not fully compensate. Umbrellas coverage insurance policies were thereby created to fit such situations. These insurance policies have a wide range of applications and can be beneficial to property owners of all sorts. One significant advantage of umbrellas insurance covers is that they can provide extended protection to the clients’ family members. Umbrella insurance policies can be used to protect property owners from unnecessary charges or costs resulting from damage to other people and their property. Lawsuits of such nature might require property owners to incur costs dictated by the law. Umbrella insurance covers are familiar amongst some communities and people in the world since they give all-round protection of a client’s assets and family in the event of a contingency.
Umbrella Insurance policies are beneficial first because they are very inclusive. Such policies offer protection to both the clients and close family members, depending on the conditions described n the insurance contract. Another reason why umbrella coverage is beneficial is that it can protect an individual or business from bankruptcy caused by lawsuits and other damage claims made against them. For instance, if an individual causes a road accident that involves several cars, damage claims on the individual might be too costly for a single individual or insurance policy to covers. Umbrella coverage is particularly beneficial in such situations because it can significantly lower or cover the damage costs and ensure that the clients are not adversely affected by such unforeseen eventualities.
Conclusion
Insurance policy coves are particularly essential because they enable businesses and individuals to remain stable in the event of any peril or risk. It is crucial to ensure that the people worldwide are educated and informed about the various toes of insurance covers to increase awareness within the world population. Insurance policies also have to be made affordable and easily accessible so that people from all economic classes can get essential insurance covers such as health and home insurance. This study has been incredibly beneficial in understanding the various types of insurance policies and their functionality and benefit to businesses and individuals. Therefore, individuals and organizations need to acquire insurance covers to protect themselves and their businesses from perils and unforeseen circumstances.