Understanding An Insurance Policy

In insurance, generally, the insurance policy states that the insured is protected from certain risks. In return for an upfront fee, called the premium, the insured promises to compensate for certain loss resulting from perils mentioned in the insurance policy language. A number of types of insurance policies exist in the market. They cover many aspects related to property, casualty, liability, workers’ compensation, disability, health, veterinary, burial and many more. Each type of insurance policy has its own coverage and premium.

One type of insurance policy is a life insurance policy. It covers the insured for monetary loss resulting from death. Life insurance policy limits are decided by a combination of factors such as age, health, gender, family history of illness, whether the insured has filed any claim for death benefits, and whether the insured has any dependents. There are many different types of life insurance policy limits. Policy limits vary based on the nature of the risk to the insured and his dependents. The total coverage provided under the life insurance policy may not cover the insured’s funeral expenses, if the insured has any dependents.

Another type of Liquor Liability Insurance is the automobile insurance policy. Under this type, named insured is responsible for damages to or injury to other people or damage to leased or hired cars owned or financed by the insured. Insurance companies base the premium amount on a formula prescribed by federal law. Premium amounts usually increase with age, driving history, gender, the number of cars insured, and the value of the cars insured.

Personal accident insurance policy provides coverage for personal injuries caused by libel, slander, malicious prosecution, birth or death, loss of or theft of a purse or wallet, any bodily injury caused by the insured’s vehicle or its components, or any other type of perils not mentioned in the policy. Bodily injury perils are those that specifically apply to physical harm received from an occurrence other than a vehicle accident. Liability coverage form an important part of personal accident insurance policy, and sometimes these policies also include property damage liability, medical payments coverage, and legal fees and costs.

Homeowner’s insurance policy protects the insured against losses resulting from fire, explosion, flood, vandalism, or intrusion by hostile persons. Homeowner’s insurance contracts usually specify a time limit for which the property will be protected. If the insured fails to compensate for losses caused by house fire within the designated time period, the home owner can claim compensation from the insurer. Insuring agreements may also provide coverage for legal fees, judgments, and expenses related to settling a lawsuit.

Property insurance policy offers compensation to owners of buildings and permanent fixtures. The contract may also include coverage for injuries caused to employees or guests on the premises of the insured. Contents insurance policy covers valuables owned or used by the insured.

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