We’re all exposed to risks every day. When we get in the car to drive somewhere, there’s a risk we could be involved in a car accident. If you own a home, there’s a risk that a tree could fall on your home. Accidents and disasters can happen at any time, and if you’re not adequately insured, you could be responsible for paying for repairs and damages out of your own pocket.
What Is Insurance?
Insurance is a form of risk management used to provide financial protection or reimbursement against losses you may encounter. There are a wide variety of types of insurance you may need, including the following:
Businesses also need insurance, and these are typically referred to as commercial policies. Examples of common business insurance include workers’ compensation, commercial auto, general liability and professional liability insurance.
How Does Insurance Work?
When you buy an insurance policy, you make regular payments to the insurer, which are called premiums. In exchange, the insurer will provide coverage for you against losses covered under your policy. This means they will help pay for damages or losses up to your policy’s limit—if there is a limit—after you’ve reached your deductible.
Am I Required to Have Insurance?
In some instances, insurance coverage is required, including state auto insurance laws and lender rules. If you lease or finance your vehicle, your lender may require that you carry a minimum type of coverage or limits to ensure adequate protection. Your mortgage lender may require you to have a certain amount of homeowners insurance.
Beyond satisfying these and other related requirements, having insurance helps you reduce your financial responsibility if you experience an accident or disaster. Without the help of an insurance policy, you may be responsible for paying for damages or repairs, which can add up quickly.
Where Can I Learn More?
At Ten Eyck Group, we want to ensure all our clients have adequate insurance coverage. Give us a call today to go over your situation and learn what types of insurance may be right for you.