Sean
Insurance is a way of protecting yourself from significant, unforeseeable financial losses.
It is a form of risk management. You pay a little each month to your insurance company, and in return, they cover your expenses in the event that something bad happens.
Insurance is a contract (policy) in which the insurer (insurance company) agrees to cover financial expenses incurred from specific causes, all of which are listed in the policy. This coverage is provided in exchange for a fixed monthly or yearly fee (premium).
What are the different types of insurance?
- Property Insurance
- Types: Homeowner’s insurance, renter’s insurance, flood insurance
- Coverage:
- Damage to your home or possessions caused by: fire, theft, weather, flooding, and other risks
- Medical expenses if someone gets injured in your home and you are found liable
- Auto Insurance – Provides coverage in case you get in an accident and it was your fault
- Business Insurance (Liability Insurance) – Provides coverage in case your business is sued
- Health Insurance – Covers doctor, hospital, dental, vision, and medication expenses
- Disability insurance
- Types: Short-term disability, long-term disability
- Coverage: Provides a source of income in case you get injured and are unable to work for a certain amount of time
- Life Insurance – Provides money to your spouse, or to another beneficiary, in the event of your death
What are claims?
What is a claim?
A claim is a report that you file with your insurance company after a covered incident occurs. You do this in order to have the insurance company pay for the financial expenses incurred by the incident.
When do you file a claim?
A claim should be filed after a covered incident occurs.
How do you file one?
Most of the time, you should call your insurance company to file a claim over the phone. For example, you will need to call your insurance company to file a claim if you get in a car accident that results in damage to your vehicle. They will probably require photos of the damage before they can approve the claim, and then they will send you to one of their approved auto repair shops. Getting a rental car for free while your car is in the shop may or may not be included in your policy.
What is a deductible?
A deductible is the amount you have to pay out of pocket if an incident occurs, even if it was covered. If the total expense is more than the deductible, the insurance company pays the rest.
