Insurance is a way of protection against financial loss in case something happens. It’s a form of financial risk management, mostly used to mitigate against the threat of some uncertain or contingent expense. There are different forms of insurance like life insurance, automobile insurance, home insurance, and health insurance among many others. Each insurer has its own policies and procedures related to claiming insurance benefits. Below you’ll find some of the more common types of insurance claims.
When your car is damaged or stolen, it will require you to file a claim for collision coverage. Collision coverage is provided by two types of insurance, liability and comprehensive. Liability coverage is limited to physical damage to the insured vehicle and is required to be filed within certain limits and for certain deductibles. Comprehensive coverage on the other hand provides monetary coverage for damages not limited to that inflicted on the automobile itself. Comprehensive coverage will also reimburse you for any medical expenses and loss resulting from the covered loss.
Personal Property Insurance is an important part of your overall insurance portfolio. Personal property insurance protects your items of daily living from damage. It also covers your investment in business assets, such as stocks and bonds. Although you may not actually use all of your items, it’s still a wise idea to put them up in a storage facility to ensure that they’ll still be available when you need them.
Homeowners coverage or homeowner’s insurance protects your investment in your home. The name insured ensures that the policyholder is protected should he lose his home. Some policies include replacement cost coverage, which is meant to cover the difference between the value of the real property and the insurance policyholder’s initial mortgage payment. Replacement cost basically means the amount you’d have to replace the items lost in a fire without having to pay any extra money.
Public Liability Insurance will pay for the legal costs if someone is injured or killed in a car accident that is your fault. Your insurer will shoulder these costs, even if you are not at fault. This type of coverage usually comes with an exclusion for personal injury charges. In most states, this type of insurance is required by law, so the policyholder must carry it. If the public liability clause of the policy is not included, the policyholder can purchase PIP insurance instead.
Car Insurance is intended to protect you against any claim based on events occurred while driving your vehicle. It pays to understand the three different types of homeowner’s coverage, including personal property, vehicles, and other items covered by the policy. This coverage may pay a lump sum amount or via a schedule of payments. Car insurance works on a replacement cost principle. Your vehicle is covered for repairs or replacement if it’s damaged or destroyed due to a covered peril, like a collision.
Roadside Assistance Plans will replace your windshield if it is cracked or installed poorly, and will pay to have it replaced or repaired by a certified mechanic who belongs to the plan. You don’t have to purchase Roadside Assistance Plan coverage, but many do. Other benefits offered are Personal Effects Coverage, which pays the value of your personal property damaged or stolen from a rented vehicle and also pays a percentage of the deductible or co-pay to providers for doctor visits or dentistry visits, both when you make them and within a year of making them. Personal Effects Coverage is usually deducted from your regular premium, making it a cheaper way to get insurance.
Auto Insurance is usually required by state law and gives the policyholder legal protection. The auto insurance premium is calculated based on certain factors, including age, driving record, gender, and type of vehicle, etc. The premium also depends on the insurer’s terms and conditions. In some states, laws prohibit insurance companies from asking about prior medical history of policyholders, such as pre-existing back pain. So you should know these things about auto insurance before signing up.