Article by Charmaine Chido Makichi
The word Insurance will likely not be new to you dear reader, but the phrase “property insurance” may be a not so familiar word to you and many other people. We live and we learn so I will explain.
Maybe you have heard the phrase but probably do not really understand what it is and why it is important to you. In today’s article, I am going to explain more about property insurance, what it is and why a property owner must sign up for it.
Basically, an insurance is a fund that provides protection against a possible negative eventuality; so when we talk about an insurance company, we will be talking about an institution or an organization that provides a range of insurance policies to protect individuals and businesses against the risk of financial losses in return for subscriptions, be it monthly, quarterly or yearly subscriptions. The company operates by pooling funds for a risk eventuality amongst a large number of policyholders.
When we look at property insurance, we are actually looking at the protection of properties or policies that provide either property protection coverage or liability coverage for property owners. Property insurance includes a number of polices which are homeowner’s insurance, renter’s insurance, flood insurance, and earthquake insurance. It also covers damage to the building, to the household property, windowpane breakage, burglary, theft, impossibility of living as a result of a fire or flood etc. as well as personal liability insurance.
It is important for property owners to have property insurance because it protects the property and its content and that is its main function. The protection for your property covers against all kinds of risk of damages caused by fire, natural disaster or other factors. When one buys or gets a property insurance, he or she will be securing assets from any mis-happening.
Granted, it’s not every day that immovable property is damaged to warrant an insurance claim, but the fact of low risk is no assurance that there won’t be a mishap, and if that mishap were to befall you, it’s ever prudent to have insurance cover in place. A fire or earthquake can strike anytime and with no warning. As long as one lives on earth, the danger of these catastrophes is ever present.
Most people are more familiar with vehicle insurance, which is a mandatory subscription for anyone driving a car. The law compels one to have it or else one isn’t permitted to drive on the road as this attracts a fine.
Insurance especially real estate insurance is one thing you seriously need to consider if you are a home owner.