In insurance, an insurance policy is simply a contract between the policyholder and the insurance company, which legally dictate the benefits that the insurance company is legally obligated to pay in the event of a loss. In return for an initial investment, commonly known as the premium, insurers promise to cover certain perils specifically covered under the insurance policy’s language. These are typically called “peril” or “chaise” insurances. For example, if your house is burned to the ground, your home owner’s insurance policy will not only cover the cost of rebuilding your home, but also the cost of clearing the ashes and the structure itself from the fire. This is called property damage, or T&D insurance.
Property and liability insurance policies differ greatly in that the property coverage is often non-existent. Liability insurance covers the costs that are attributed to injuries that occur on your premises, such as if a guest slips and falls on your front walk. There are many common exclusions to this type of coverage, and it is vital that the policyholder familiarize themselves with them. Exclusions are typically very broad and include things like libel, slander, malicious prosecution, discrimination, physical damage and the death of the policyholder. Learn more information about Physicians Office Insurance
A typical property and liability insurance policy form includes several paragraphs that outline the elements of the agreement. In it, the insured is expressed agreement to reimburse the insurer for any losses or damages that they are legally obligated to pay out. The details of these agreements vary greatly from one insurance policy to another, so it is important for the insured to read and understand the language included within the form before purchasing the coverage. Any changes to the contract need to be explained to the insurer at this time.
Property insurance policies are often purchased by individuals who rent their homes, apartments or condos. These policies will also cover the home itself as well as personal items inside of the house, such as furniture, electronics and clothing. Many renters will opt to put down an amount equal to the monthly rent for security purposes. Many insurance companies offer discounts for renters who purchase coverage, so it is worthwhile to inquire about this possibility.
Many insurance policies require an amount of money upfront as a premium. This is the “sum insured,” and this sum is often determined by the coverage offered by the insurance company. If a claim is made against the policy, the amount of the claim is the “sum insured.” Premiums can also be raised or lowered at any time prior to the end of the policy.
Many insurance plans provide financial assistance to individuals who are injured or fall ill due to other people’s negligence. Some of these programs require proof of financial assistance, such as tax returns or social security cards. Tax benefits are available to residents of many U.S. states who are handicapped, disabled or elderly. In order to qualify, applicants must prove that they meet certain income requirements, or they must provide documentation of financial assistance in the past.