In insurance, generally the insurance policy is an agreement between the insurance provider and the insured, that decides the extent of the coverage that the insurance provider is legally obligated to pay in the event that the insured occurs to undergo an accident. In return for an upfront payment, commonly called the premium, the insured promises to cover all loss resulting from perils mentioned in the insurance policy language. Although all insurance policies are not the same, generally there are five types of insurance policies: casualty, property, liability, car and life insurance.
Casualty insurance is one type of insurance policy that pays out to the named beneficiaries in the event that the insured is involved in an accident. It does not specify any particular damages that are to be paid; it only requires that the insured is legally competent to cause an accident and that a declaration was made stating that the insured was acting within the confines of the law at the time of the occurrence. Property insurance policy limits are imposed on the insured’s use of his or her own personal property. Liability insurance policy limits are imposed on the liability of the insured. Car insurance policy limits are imposed on the insured’s use of automobiles.
Another type of insurance policy is liability insurance. It is normally taken out by those people who will have to bear medical costs and damages caused by another person or his property. Property damage coverage is imposed on the insured when he or she must meet with an accident or damage to his or her property. The sum insured for property damage and bodily injury coverage are normally limited to the market value of the insured’s property. Life insurance policy coverage is intended to provide for the payment of a benefit to the family or survivors of the insured upon the insured’s death.
Car insurance policies offer three basic kinds of coverage: bodily injury, property damage and liability. Bodily injury is the term used for physical injuries to another person caused by the insured. Property damage is the term used for damage or destruction to real property caused by the insured. Liability is the term used for lawsuits that arise out of accidents or crimes. Policy limits vary from company to company. You can get more information about Cemetery Insurance
It is advisable to compare insurance policies offered by different companies before deciding one. Many insurance policies provide similar coverage but there may be some differences in their prices or the kind of coverage offered. Some policies may only cover liability while others cover only bodily injury. Others may only pay a specified amount in the event of a total loss. The best way to get a clear picture of how much coverage will be provided is to consult a copy of the insurance contract or a separate coverage form provided by the company.
There are many factors affecting the price of an insurance policy. One of these factors is the nature of the risks associated with the insured’s perils. If the risks are less likely, insurers will have less to charge for the insurance policy. Companies also use various exclusions and exemptions in the contracts to avoid paying out too much in case of major losses. When the risks associated with specific perils are known, insurers will usually bid a lower premium on the insurance policy.