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Top Misconceptions About Insurance

Top-Misconceptions-About-Insurance

Insurance began centuries ago when maritime merchants and traders developed a method of distributing risks to limit the damages they incur whenever their vessels capsize. Nowadays, this risk-distributing device has gained appreciation from all over the world and has become a necessity.

Every person values one’s life. Most people today have their own properties. Our lives, as well as our properties, are exposed to various risks like fire, accident, flood, theft, etc. To protect our treasured properties, we have to get insurance for these from Amco Insurance.

Nonetheless, various myths have still prevented people from getting insurance. Let us analyze and discuss these misconceptions.

  1. Insurance companies offer similar policies.

    People think that all companies which provide Insurance Services in Miami, Florida offer identical policies to similar insurable properties. They think that every owner of an insurance policy gets the same benefits for the same amount of premiums.

    But this is not the case. Just like every other product or service in the business world, every policy for varying properties would cost differently. Insurance companies first determine the risks and the value of the property to be insured before creating an assessment. They also look at the age, lifestyle, and health condition of a person before being able to determine how much the life insurance of an individual should cost.

  2. When you rent, your landlord pays for the insurance policy.

    Even though tenants do not own the land, apartment or house they are possessing, this fact does not mean that they do not have an insurable interest in the property. Insurable interest, which is a requirement before one can insure a property, means that a person would suffer damage if the property is exposed to the insured risks. Contrary to the misconception, the insurable interest of a tenant on the property one rents is different from the insurable interest of the landlord.

    For instance, if a rented apartment is destroyed by fire, the tenant would not be able to exercise their right to possess the unit anymore. On the other hand, the landlord who is the owner of the apartment would not have a unit to be rented out anymore if this same peril occurs. The tenant and the landlord would suffer different damages; they would have different interests to be protected by their insurance.

  3. A person with a health problem cannot be insured.

    When a person is diagnosed with a disease, it does not automatically mean that he can no longer get a life insurance. It does not mean that the sick person does not have any interest in one’s survival anymore. It would just mean that the risk of death is increased; hence, one would be paying for a greater premium.

Be wise and do not be deceived by these misconceptions. Be informed and get an assessment for your life and properties in a trustworthy insurance company.

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