Insurance coverage and what you need to know about it
Insurance coverage is one of the most important terms that you should study well if you want to purchase an insurance policy during the coming period.
Insurance coverage is one of the basic factors on which insurance is based.
The insured person goes to the insurance company to avoid the risks that may befall him or his property in some way, and to charge the insurance company these risks (insurance coverage) in return for the insurance premium that he pays…
But what exactly is the insurance coverage? What are the conditions for obtaining it? And what are the things to know before applying for it? Are there limits to the insurance coverage?
So, let’s start by defining it…
What is the insurance coverage?
They are the amounts borne by the insurance company (the insurer) when any of the risks stipulated in the contracted insurance policy occur, before applying any deductions, (deductibles – depreciation ratio).
To know how important it is to understand the meaning of this term, you must first know the advantages of insurance coverage…
Benefits of insurance coverage:
Insurance coverage is inversely proportional to the deductible:
If you do not know what the deductible is, it is simply the percentage that the insured person bears from the costs of the damages that have occurred to him.
Increasing this percentage, of course, increases your insurance costs and reduces the insurance coverage that the insurance company provides you with…
But when the deductible is reduced (or does not exist at all in some types of comprehensive insurance), the insurance coverage increases and in some cases reaches 100% of the costs of repairing damages or bearing risks.
And you can control what you get from the coverage by choosing the most appropriate policy for what you need and increasing the insurance premiums to reduce your deductible or disappear completely in some cases.
When you contract with an insurance company, you are not only buying a risk-taking service, you are also getting security.
Therefore, it is necessary to look for safety when you want to contract with an insurance company, and insurance coverage is what enhances your feeling of this security,
The more insurance coverage you have, the more secure you’ll feel, knowing that you won’t be taking on any of the risks alone.
Disasters do not knock on doors to come, but surprise us with the dangers they have in moments!
This makes your position in front of disasters weak, as you are not always ready to bear losses and damages.
Insurance coverage provides you with quick action, as you can solve the problem or get the costs of repairing damages in a short time,
For example, we in Tokio Marine are keen to disburse compensation within a period not exceeding 5 days in some types of insurance we have, to save our customer’s time.
Add what you want:
Every insurance company has lots and lots of insurance programs designed to keep you satisfied and protect your property from risks…
What is unique about these programs is that you can customize the features you want in your document so that it becomes customized for you only, and meets the needs that suit you…
Insurance coverage will give you this luxury.
Extends to others:
Sometimes the insurance coverage may extend to the non-insured, for example, a third party who sustained damages due to an accident caused by the insured.
And after we talked about the advantages of insurance coverage, let’s get to know the conditions for obtaining it…
Conditions for obtaining insurance coverage:
Well, there is probably no one answer to this question other than “the damage was not intentional, to get the security deposit.”
Of course, the conditions differ depending on the type of document you contract…
Therefore, you can contact us to tell us about the type of insurance policy you want, and we will explain to you all the conditions for obtaining insurance coverage according to the type you choose, and we will also answer all your inquiries regarding insurance in general.
Things to know if you want to get insurance coverage:
There are two main things you should know if you want to get insurance coverage from any insurance company…
- The type of insurance coverage to be obtained
- Limits and value of that coverage
Knowing the type of insurance coverage will make it easy for you to determine what you want, for example, if you want to insure your car, do you want insurance against certain risks, or comprehensive insurance to avoid all risks or do you want to obtain third-party liability insurance to avoid risks that may occur to others? because of your car?
Of course, after knowing the type of coverage you want to obtain, you will know the limits of this coverage and its value from the insurance company and determine whether it is suitable for you or not.
But are there certain limits allowed in the insurance coverage?!
What is the permissible limit in insurance coverage?
It is the maximum limit (as specified in the policy schedule) that the insurer (the insurance company) is responsible for paying to the insured in the event of any damage to what the policy stipulates to be covered, before applying any deductions, (deductible – depreciation ratio).
Of course, this limit varies according to many factors, such as the type of policy, the amount of insurance paid, the deductible, and other factors that affect insurance coverage in general.
Finally, we would like to remind you not to hesitate to ask us about your insurance concerns, and one of the experts at Tokio Marine will answer all your inquiries as soon as possible.