Insurance is important because it protects a person or entity from extreme financial loss or responsibility due to an unfortunate emergency, accident or negative unforeseen event. There are many different kinds of insurance, some of which cover a person and some of which cover businesses and other entities.Know More
There are many different types of insurance, but Investopedia says the most important types of personal insurance people should consider having in place include: long-term disability insurance, life insurance, health insurance, homeowner's insurance and auto insurance. Businesses should consider carrying property, general liability and professional liability insurance.
Insurance can protect people from financial devastation should the worst-case scenario happen. In the case of a car accident, for example, the insurance company will usually cover medical expenses and the cost to repair the car or purchase a new one. Health insurance helps to cover the day-to-day costs of doctors and prescription medications, but most importantly, it picks up the bulk of the cost should someone be diagnosed with a chronic or major medical condition, such as cancer. Business insurance can save a company from financial ruin in cases like medical malpractice, slip-and-fall injuries on the business property or injuries that may happen to an employee on the job.Learn more about Insurance
There are seven basic principles of insurance, which include subrogation, insurable interest, contribution and utmost good faith; in addition to indemnity, nearest cause and minimization of loss. These principles are meant to safeguard insurance contracts.Full Answer >
Gap insurance, or guaranteed auto protection, protects a buyer or leaser from loss when a vehicle has been stolen or damaged beyond repair. When the value of the loan taken out to buy the vehicle is more than the current market value that insurers pay, gap insurance makes up the difference in the coverage.Full Answer >
Flood insurance covers damage and loss to a building and personal property as a result of a flood, according to the National Flood Insurance Program. Building insurance and personal contents insurance are the two components of flood insurance, and property owners must purchase each separately.Full Answer >
The differences between an HO-3 and HO-6 homeowner’s insurance policy are the dwelling limit, other structure coverage and loss assessment coverage, writes Equifax. HO-3 policies are issued to an owner of a residential home, while HO-6 policies are issued to an owner of a condominiumFull Answer >