Property Insurance

1
Property Insurance In this era uncertainty is
inevitable. This led to increase in demand and
importance for many products insurance is one
such product. It offers a strong shield against
any unseen and uncontrolled attacks of any sort
on possessions. It offers hope, trust, something
to turn to in times of helplessness. This is
true, including and especially, for property
insurance. People dig hard throughout their lives
to buy valuable possessions. What if these
possessions are destroyed in a blink of an eye?
What if there is no one to turn for help? This is
where property insurance comes in. It covers the
possessions of individual financially in case of
theft, destruction, and loss of any kind. There
are then specific forms of property insurance
like fire, boiler, flood, etc. Property
insurance has become increasingly important
especially after the 2007/08 financial crisis as
this whole global level crash initiated from the
housing market. People are increasingly cautious
of insuring their possessions and especially real
estate properties. This is because to be able to
afford something requires months and years of
efforts and which could be lost completely if
proactive mindset is not adopted. Also, there is
true psychological relief where in life where one
does not unnecessarily have to worry about
protecting his or her possessions as he or she
knows that it will be paid off by the insurance
companies. If property insurance is combined with
the professional insurance it offers a strong
defense against any kind of loss of ownership of
personal assets. In this globally connected
world where rise and fall happens every second
insurance provides powerful amour. It is making
less investment and protecting big. There are
numerous shortcoming of property insurance.
Although property insurance offers unmatched
benefits, it also expects individuals to be
practical. There is opportunity cost involved
when money in form of premium is monthly paid to
insurance companies. The same money if was saved
in banks or invested in treasury stock or used to
buy bonds would bring regular cash inflow. This
is not the case in property insurance as it leads
to regular cash outflow for a longer time period.
Also, insurance companies many times refuse to
pay for property losses occurred. This leads to
big financial loss for individuals who buy
property insurance. Lastly, ones who are insured
naturally develop the feelings of ignorance and
negligence towards the insured goods or services.
This leads to irresponsible aggregate behavior in
the society. This is one aspect of the insurance
that is usually not discussed and thought which
has serious consequences not to any one
individual, but to the society as a
whole. Mostly people have less information of
insurance policies, processes, and so on. This
information asymmetry leads to prodlews, later.
HeYÐe, ?the wore ?ou kYo?, the detter proteÐted
?ou ?ill? applies. It is also e?peYsie wakiYg it
difficult for people to opt it. Then, people
should really be careful and research well before
finally selecting the insuraYÐe ÐowpaY?. Yes, I
aw referriYg to the Yoel ?The RaiY Maker? d?
JohY Grishaw.
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