""Mr Junuke, his wife and 3 kids were in the house resting on a Saturday afternoon, suddenly the fire alarm started ringing… something has started a fire and soon the whole house is on fire… The Junukes was able to get out of the house, but the house was totally burnt…few weeks later his Mr Jovwoke called him sending his condolences… ohh the house was insured, so I got every property that was destroyed restored…Mr Junuke replied……. insured… what do you mean by the house was insured… what is insurance???
What is insurance
An insurance is a financial vehicle that helps spread risk by taking the risk from an individual and spreading that risk around a community of like minded people, thereby saving the individual from ruin in case of a mishapping or casualty to the insured.
The insurance company and the insured
A firm or an industry that does insurance for people or organizations is called an insurance company.
The individual or the property that is registered with the insurance firm is the INSURED https://howtodiscuss.com/t/insurable-interest/14614.
How do we insurance companies make their money
here’s how insurance companies make their money…An insurance company meets allots of people who wants insure a property and then collect a certain amount of money from them all…and from that money that money collected, they pay or shoulder the cost of any damage to the insured according to the terms of the insurance.
Why insurance
People or organizations take insurance to free them from financial ruin incase of mishapping to the insured, because in such times the insurance company https://howtodiscuss.com/t/insurance-company/15562. assume and accept responsibility for the damaged insured asset(s).
Types of insurance
There are two primary types of insurance… these are;
- life insurance What is term life insurance?. e.g retirement plan https://howtodiscuss.com/t/employer-sponsored-retirement-plan/15451.
- non life insurance What is term life insurance? e.g home owner’s insurance,
How much is homeowner’s insurance?. car insurance Car insurance policy, pet insurance Pet Insurance. etc.
What is home owner’s insurance
A home owner’s insurance is a type of property insurance https://howtodiscuss.com/t/property-damage-liability-insurance/15902. that covers one’s own private residence and everything within it…(This was the type of insurance that covered Mr Junuke in our opening story).
How much does home owner’s insurance cover
A home owner’s insurance How much is homeowner’s insurance?. covers one’s own private residence https://howtodiscuss.com/t/residence/11950. and everything within it and also any damage or accident within it. The Quarterback’s Job in a Football Game.
Premium
In insurance, it is very vital to understand the concept of premium. Premium https://howtodiscuss.com/t/insurance-premium/11844. is the probability of something wrong with the insured property or individual. The higher this probability (premium) the higher the charges.
How to get insured
For you or your property to get insured, contact your local insurance agency https://howtodiscuss.com/t/federal-deposit-insurance-corporation-fdic/13041. But before you insure any property, speak with a financial advisor or intergenerational planner so as to guide you on what type of insurance
How much is homeowner’s insurance?. to buy.
frequently asked questions
What is insurance premium
Insurance premium is the probability of something going wrong. Lots of times, your premium determines how much you pay as insurance deductible. i.e, the higher your your premium the higher the amount you’ll pay.
What is insurance deductible
Your deductible is amount that you must pay before the insurance contract can become active.
conclusion
An insurance is a vehicle that helps spread risk by taking the risk and spreading it around a community of like minded persons thereby saving the individual from ruin in case of mishapping or casualty to the insured.
Insurance helps save the individuals or families from financial ruin incase of mishapping or casualty.