¿What is insurance and how does it work?

¿What is insurance and how does it work?

Insurance is contracts whereby, in exchange for collecting a premium (insurance price), the insurance Company undertakes, in the event of an accident covered by the contract, to indemnify the damage produced or to satisfy a capital, income or other Agreed allowance.

Terminology

A special terminology is used in the insurance world. To understand the characteristics and functioning of these products, first understand the meaning given to the following words:

People involved

• The insurer: is the insurance company. In exchange for collecting a premium, it assumes the obligation to indemnify the insured or beneficiary a certain amount of money, in the event of a certain event occurring (contingency).

• The policyholder: is the person or company that contracts the insurance and pays the premium.

• The insured: is the person exposed to the risk covered by the insurance contract. The risk may fall on the person of the insured, on the property that it possesses an economic interest or on its globally considered patrimony

• The beneficiary: is the person or company that is entitled to receive the consideration agreed upon in the contract.

The policyholder, insured and beneficiary could be the same person, or different people.

Other terms

• Policy: This is the document in which the insurance contract is embodied. It contains the regulation of the same and is composed of general, particular and special conditions.

• Premium: The price of insurance

• Insured sum: The amount fixed in each of the agreed coverages and constitutes the maximum limit of compensation payable by the insurer, in case of contingency or loss.

Contingency/Casualty: The event foreseen in the policy and that gives rise to the fulfillment of the obligations of the insurer. The production of the contingency or loss gives rise to the agreed indemnification. (Examples of contingencies: death, sickness, fire, accident, etc.)

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How to secure your home.

How to secure your home

Insurance is a contract whereby a person pays a specialized company a certain amount of money in exchange for compensation in the event of a risk situation. Insurance companies offer various kinds of policies that can be gathered in two large groups: personal and patrimonial. The first ones cover the physical integrity of the insured such as life, disability or retirement. The second group covers irrigation related to the assets of the insured such as robbery, flooding and fire. Many families are unaware of the benefits and aid that can be obtained by securing a home.
This company offers the safe home policy, which includes coverage in three parameters: family, home and vehicle. The home policy refers to housing and contains coverage in cases of fire, earthquake, collapse, rain, flooding, falling trees, among others.

The values handled by certain insurance policies are as follows: Earthquake, quake, collapse and volcanic eruption: 2% of the insured value, with a minimum of USD 500; Rainfall and flooding, 1% of the insured value, minimum USD 350; Glass breakage, 10% of the loss value, minimum USD 80; Other events, 10% of the loss value, minimum USD 175. All the values handled are yearly. This company also has insurance against robbery and/or assault. The cost is 10% of the claim's value, with a minimum of USD 200. It also has electronic equipment insurance and its cost is 10% of the loss value, minimum USD 200 per year, an insurance policy covers all unforeseen or sudden facts affecting a home.

The type of policy in case of natural disasters or fires is similar to insurance there is a contract in case of theft of the real estate, except the subtraction of cash, jewels and works of art. The value of the annual fire rate in the furniture market is variable. However, the index is, on average, 2.20 by 1 000. That is, if a house costs USD 100 000 The value you pay for fire is USD 220 annually. The robbery is 1.20 for 1 000. If a home is secured in USD 10 000, you must pay USD 120 annually.
How to get a home policy The interested party must go to the insurance company and request the information. The years of construction, the terrain area and the site where it is located are three of the parameters that are taken into account. The policies do not cover structural damage. This kind of injury is a civil liability of the builder. The landlord has the right to claim the professional, who, in turn, should reverse the housing damage. And how can we protect the communal equipment, which is so necessary and so susceptible to damage of varying magnitude? For that is the supplementary policy called ' Machinery break '. For a percentage that goes from 1 to 3 for 1 000 (depending on the state of the property), the condominiums have insured the cisterns, the elevators, the Transformers, the gardens and even the swings where the children play. Variety of Insurance The Horizontal property law requires shared insurance. The fire policy is the most required, although there are additional machinery breakage...   ' Civil liability ' insurance protects against eventual actions such as the theft of pictures or accidents such as the fall of a brick when it passes through a construction...

This content was originally published by Diario EL COMERCIO at the following address: http://www.elcomercio.com/tendencias/construir/asegurar-bienes-e-inmuebles.html

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