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What is Insurance – Back to Basics

11.14.2014 By Elliott Insurance Insurance News

You’ve probably heard people talk a lot about insurance and claims they have made. But what does it actually mean…

You’ve probably heard people talk a lot about insurance and claims they have made. But what does it actually mean to have insurance and what are the benefits? Insurance can be complicated and sometimes it can all seem too hard.

For this reason, we’ll be going back to basics to give a run down on insurance so you’re able to make an informed decision about any policies you decide to take out.

Insurance Made Simple

In its simplest form, insurance can protect you against financial loss if something goes wrong. You take out an insurance policy and pay money, called premiums, on that policy. In return for paying your premiums, your insurer will pay you money if something goes wrong. For example, if you damage your laptop, your insurer can provide money to replace or repair the laptop. There are many different types of insurance and you will need to take out a number of different policies to protect different areas of your life. There are insurance policies for your home, possessions, car and other vehicles, business and travel, as well as a number of specialty policies.

Remember, each insurance policy is different and there are certain exclusions on most policies. Exclusions are things that the insurer won’t pay money for if something happens. You need to read the policy carefully to make sure it suits your needs or discuss with your insurance broker whether it is the best policy for you. It’s also important to know that some forms of insurance are compulsory for certain businesses.

With some insurance policies, you will be required to pay an excess which is an amount you will have to pay for a claim. Generally, the higher your premiums, the lower your excess and vice versa. For example, if you have a $500 excess and the cost of repairs is $1000, the insurer will pay $500 and you will pay the remaining $500. In some cases there are waiting periods on policies before you can make a claim.

Many benefits to Being Properly Insured

Insurance can give you piece of mind if something goes wrong and means you won’t have to shoulder the entire financial burden. Insurance is particularly important for things that you would never be able to afford if they needed replacing. For example, if your home is destroyed by fire and you don’t have proper insurance, you will get no financial assistance if you need to rebuild.

At Elliott Insurance Brokers, we offer professional service and use our superior knowledge to find the best insurance packages to suit your needs. If you’re unsure about which insurance policies best suits your needs, it’s best to speak with an insurance broker as they have an in depth knowledge of the various insurers and their specific policies.

If you have any further questions about insurance or would like to take out a policy, contact Elliott Insurance Brokers on 1300 635 315 and we will be more than happy to discuss your specific needs.