There are almost as many different types of insurance available as there are insurance brokers. This can be daunting for almost anybody looking to insure themselves, their loved ones or their prized possessions against harm. Sometimes the confusion can even lead to anxiety and delays in purchasing adequate cover – which, if fate strikes at an inopportune moment, can lead to disaster.
What is insurance?
Insurance has historically been used to hedge against risk. Whether there was a danger of sunk shipping, death on-the-job or theft of a precious heirloom, the goal remained the same: avoid financial ruin, and compensate for losses. The modern insurance industry, in Ireland or elsewhere, provides its customers with the same service.
Why is insurance important?
Insurance is important, then, because it protects people against losing things they can’t afford to – financially, emotionally, or otherwise. If you are in a car accident, insurance companies recommended by a broker like Campion shoulder the task of assigning fault, and can pay for damage taken or incurred appropriately.
If you are travelling and suddenly fall sick, lose luggage or even have to cancel the whole trip due to unforeseen circumstances, travel insurance at various price points can cover your medical expenses, the value of your misplaced possessions or even reimburse the cost of the holiday altogether.
However, many young people prefer to take the risk of going without insurance for unforeseen problems when it comes to their vehicles or their mini-breaks and only pay for the most minimal cover, if at all. Of course this often works out just fine (except for when it doesn’t!) but even misfortune in these cases seldom leads to complete disaster – we only rarely spend potentially ruinous amounts of money on a car or a holiday, after all.
Why is home insurance important?
Unfortunately, there is one area of life where we are exposed to risk at a magnitude higher than any other: our homes. A person’s home is an island of security, where all of one’s most important possessions are kept: passports and other documents, musical instruments, souvenirs, technology and expensive kitchen appliances.
Especially for young people in their twenties and thirties, just setting their foot upon the first rung of the property ladder, suffering an unforeseen mishap without homeowners insurance can leave them facing a financial cliff-edge. So however unlikely disaster might be to strike, it’s always worth taking out some form of protection.
The cheapest homeowners insurance packages cover either just the contents or just the bricks-and-mortar value of a home. The former usually covers one against fire damage and burglary, among other circumstances, while the latter concerns physical damage to the property from various sources and is sometimes required for or built into a mortgage package.
Usually, the buyer has the option of choosing the value to which their property will be insured, high or low – so while you run the risk of significant losses in a totally disastrous situation, cheap homeowners insurance with a low premium is always better than nothing, and provides some hedge against risk.
More comprehensive but not-quite-as-cheap homeowners insurance – so-called “building and contents insurance” – covers (you guessed it!) both your property and those possessions of yours that reside permanently within it. This is the safest way to insure yourself and your loved ones against losses from the broadest range of sources.
Obviously, the specific insurance package you choose to purchase is entirely your decision. Insurance’s utility lies in the way it protects against risk – and it’s up to each of us to decide how much risk we can afford to take. Homeowners insurance, however, seems to be a particularly good hedge against a big financial shock, however slim the chances are of one occurring.
Campion Insurance provides free quotes on a wide range of insurance products.
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