There are many different types of insurance and even the same type of insurance can differ vastly in price. Insurance should act as a financial safeguard and among the most popular are home insurance, life insurance, contents insurance, travel insurance, pet insurance and car and motorbike insurance.
Home insurance is often referred to as building and contents insurance, as home insurance will traditionally protect a privately owned home and the possessions and contents within the home. Home insurance is a type of protective insurance that will help a homeowner who suffers from severe to minor damage to their home. The insurance can cover damage by a flood or fire, to possessions that are stolen during a burglary. Home insurance companies will typically expect locks to be secure to protect against theft and smoke alarms to be installed to protect against fire. Homes that are situated in high risk flood areas will often struggle to get good insurance deals, compared to homes that are situated in lower risk areas.
This is an insurance policy that is important to someone who has a family, as it gives peace of mind. Life insurance doesn’t benefit the policy holder financially, as, after death, there is a payout to someone who was designated to receive a sum when the policy was drawn up. This is helpful to relatives and loved ones, regarding, for instance, funeral costs. Insurance companies can dispute a claim, if a policy is in its final year when a person dies.
Contents insurance is a policy that can be taken out by both homeowners and tenants. Contents insurance will cover furniture, carpets, electrical appliances and curtains, as well as valued personal items from jewellery to porcelain. As with home insurance, contents insurance will cover damage from natural events to theft. It is also possible to take out contents insurance on specified items, including valuable antiques.
Travel insurance is mainly taken out by policy holders who are worried about family members and loved ones getting ill, or being injured, while on holiday. Travel insurance will also help the policy holder if a trip or holiday is cancelled. This will include refunds, alternative travel arrangements, etc. Travel insurance is sometimes added to a cost of a holiday by a travel company, with customers often unaware that the price of the holiday includes an option to choose not to be insured.
Pet lovers who are worried about veterinary costs, when a beloved pet becomes ill or gets injured, will consider pet insurance as a way of easing financial concerns. Pet insurance can also involve a payout if a pet goes missing or is stolen, as well as an insurance company paying out when a pet dies.
Car drivers require car insurance by law. For young drivers in particular, insurance can be costly, because they are regarded as more high risk than older drivers. Motor insurance compensates both passengers of a policy holder involved in a crash and people injured by a policy holder’s vehicle. Car insurance is also a safety net for a car driver if their vehicle is stolen, or damaged other than by a car accident, or if their vehicle breaks down.
Motorbike insurance is generally cheaper than car insurance. One of the main reasons for this is that cars are more likely to be the cause of serious injury than a motorbike. Secondly, motorbikes are normally less expensive than cars. Motorbike insurance will not always just cover personal injury, but will also offer a policy holder the chance to recover money from loss of earnings due to the injury. Comprehensive motorbike insurance will cover the policy holder similarly to comprehensive car insurance.