The cost of insurance is a rather minor expense compared to the benefits contained in the cover. The amount paid every month does not compare to the kind of risk you expose yourself to by failing to undertake the cover. If you think of insurance as an additional expense instead of a worthy investment, you have already devalued your health, property, or business.
Insurance does not stop risks or perils from occurring, as many would like. It simply transfers the cost associated with these risks to someone else. This gives you the peace of mind you deserve. There are a number of insurance policies for different aspects of our lives. Health and motor are the most commonly purchased insurance compared to others.
Most people overlook certain forms of insurance, crossing them out to ease their financial constraints. But can you afford to pay your medical bills in cash? If your home was destroyed, can you afford to repair or rebuild from scratch? How about a lawsuit from an employee hurt while working for you? What if an injury happened to a customer at your business? Can you afford to pay that kind of compensation in cash?
If the answer is no, or even maybe, you need to get appropriate insurance to cushion yourself. Below is a case study of how homeowner’s insurance policy came in handy for one of our clients.
“Last year, in the midst of selling my house, I left the keys with a friend and flew off on a business trip to Dallas. It was only for the weekend and I knew I would trust my friend and dog to keep off intruders. I had barely made my way out of the airport when my friend called to inform me of new occupants in my home.
At first, I thought they were potential buyers and had made an offer. Only I was told they were strangers taking advantage of both my absence and a vacant home; the last one on a dead end road with little to no traffic. My friend called the police but he had no way of proving the house was mine, especially after its new occupants claimed ownership.
Nothing can be unsettling as news of intruders in your vacant home that’s still on the market and when you are out of town. Your options are limited and you need to act fast before the intruders get comfortable. I didn’t have any legal documents on me to prove ownership of the house. However, I had a home owner’s insurance policy for my house.
I quickly went online and downloaded my home owner’s policy. With a hard copy in hand, I made my way to the nearest police station and reported the matter. In less than an hour, I had a team of officers at my home. They were able to apprehend the intruders. I lost personal possessions after the order, including my computers, TV, stereo, food from the refrigerator, and a bottle of laundry detergent.
Since my home had not been vacant for more than 30 days, my home owner’s policy was still in force and I was compensated for the personal effects lost and damages due to forced entry.”
From the case study, it is important to have a good homeowner’s policy. If you leave a building vacant for 30 days or more, you must get a vacant building insurance policy. Vacant building insurance generally costs more than homeowner’s insurance, because a vacant building is more susceptible to illegal entry, vandalism, fire, water damage, and theft. Nonetheless, it is well worth the investment. Cheers to our friends in the police department, but all the police agents in the world won’t be able to get you financially compensated for your losses. Only your insurance company can do that.