Understanding the Purpose of Insurance
Its aim is to reduce financial uncertainty and make accidental losses manageable. It does this by substituting payment of a small, known fee—an insurance premium—to a professional insurer in exchange for the assumption of the risk of a large loss and a promise to pay in the event of such a loss.
- Provides Protection
- Provides Certainty
- Risk Sharing
- Value of Risk
- Capital Generation
- Economic Growth
- Saving Habits
A Financial Safety Net for You and Your Loved Ones
Insurance is a financial safety net, helping you, your loved ones and our owners recover after something bad happens—such as a fire, theft, lawsuit, car accident, or hurricane. When you purchase insurance, you’ll receive an insurance policy, which is a legal contract between you and your insurance provider.
It is said that having property insurance gives a property owner/family a sense of security and protection should any unforeseen events take place, for example.
- Loss due to fire
- Adverse weather
- Theft
- Plumbing failure of
- Malicious damage
Insurance will assist people or companies in getting back on their feet after unforeseen events. It is said that the aim of insurance is to reduce financial uncertainty and make accidental loss manageable for families and companies alike, as insurance provides protection, certainty, risk sharing and value of risk.
The Value of a Legal Insurance Contract
As you may be aware, when you purchase insurance, you’ll receive an insurance policy, which is a legal contract between you and your insurance provider. This is renewed/revised on an annual basis and gives one much reassurance.
Real-Life Examples: The Importance of Being Insured
Recently, we experienced a significant robbery at one property and a fire at another complex, which resulted in extensive smoke damage to one of our units. In both cases, we heavily relied on insurance coverage to recover from the losses. At the property affected by the robbery, various equipment, appliances, and tools were stolen, though there was minimal damage to a vehicle parked on-site. Since the vehicle belonged to a friend and was insured through a different broker, a second insurance company had to be involved. This situation clearly demonstrated the critical importance of having comprehensive and up-to-date insurance policies.
Regarding the home and its contents that were stolen or damaged, there were multiple layers to address. We sustained damage to several areas of the house, particularly to the sliding door that served as the entry point for the break-in. In addition, many televisions and tools were stolen. In such incidents, it is essential to promptly notify all relevant parties, activate the insurance policy, and file the necessary reports to initiate a claim.
We emphasise the importance of maintaining insurance coverage that is always up-to-date and accurately reflects the value of your assets. This ensures that claims can be settled promptly, preventing the owner from bearing the financial burden alone.
For the unit affected by the fire, it was a learning experience. We had to account for multiple insurance policies, as the PUP (Personal Umbrella Policy) and the homeowner’s insurance were both under the same provider, including the coverage for the adjacent property where the fire originated. Consequently, numerous reports had to be filed and submitted quickly since many units became uninhabitable. Bookings had to be relocated, and in some cases, alternative accommodations exceeded the guests’ original payments.
The affected unit required extensive work to restore it to a liable condition. Throughout this process, constant communication with the insurance company was necessary. While some upfront mobilisation fees were paid by the owner, these expenses were eventually reimbursed in the final settlement, which amounted to over BDS $100K.
In this case, if the owner was not insured or was under insured, it is clear the unfortunate outcome of the situation in both cases.
Adapting to Changing Times
As a firm, we consistently advise our clients on the importance of being insured, paying their premiums on time, and staying informed about evolving trends worldwide. Sooner or later, our small country may be required to adapt to changes in insurance laws or premium structures, making it essential to stay prepared.
Why Insurance is More Important Than Ever
Amidst the challenges brought on by climate change, natural disasters, and increasing poverty levels, the need for insurance remains paramount. Whether it’s for your property, personal well-being, or business, having a comprehensive insurance policy offers invaluable reassurance. It provides the following benefits:
- Protection for your family
- Assistance during emergencies
- Peace of mind
- Financial security
- Protection for your business
In these uncertain times, maintaining adequate insurance coverage is not just advisable, but essential for safeguarding your future.
Secure Your Peace of Mind with Insurance
In essence, insurance serves as a vital financial safety net, providing protection, certainty, and peace of mind when life throws unexpected challenges your way. Whether it’s safeguarding your property, business, or personal assets, having an insurance policy in place means you’re not left bearing the full brunt of unforeseen events like fires, thefts, or natural disasters.
The real-life cases of robbery and fire incidents illustrate just how crucial it is to have adequate insurance coverage. In both situations, insurance played a pivotal role in recovering significant losses, allowing for repairs, replacements, and financial compensation that would have otherwise been an immense burden. These examples highlight the importance of keeping your insurance policy up-to-date and ensuring it accurately reflects the value of your assets.
At the end of the day, being insured is not just about compliance—it’s about securing your financial future and protecting what matters most. As we continue to navigate an ever-changing world with its share of uncertainties, investing in comprehensive insurance is one of the smartest decisions you can make, offering protection for your family, your home, and your business.
So, remember: stay insured, pay your premiums on time, and review your policies regularly to adapt to changing circumstances. By doing so, you ensure that you’re always prepared for whatever life may bring, securing not only your assets but also your peace of mind.
Written By: Anderson Miller
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