Importance of Protecting Your Investments

March 1, 2012

Importance of Protecting Your Investments

By on December 23, 2011

http://www.investwithpassion.com/importance-of-protecting-your-investments/

In the face of tough economic times, it is not uncommon to look for savings and seek out ways to make economies of scale on everyday costs. Reducing fuel bills by turning down the thermostat on the central heating even by one degree can make a difference, as can reconsidering whether subscriptions for non-essential items are really necessary.

There is one area where savings are not often considered, and that is insurance, although insurance companies are competing for customers just like other businesses. This does not mean, however, that cancelling or deciding not to renew home insurance should be considered as a saving worth making – far from it. In fact the opposite is true as the risks considerably outweigh any apparent savings. Instead, the smartest option is to look around for the best deals available from reputable insurance companies.

Is Insurance Really Necessary?

Importance of Protecting Your InvestmentsImportance of Protecting Your Investments

Insurance is a vital form of protection and one that no one can afford to be without. In particular, those who own their own home or who are repaying a mortgage must be sure they have sufficient home insurance to cover both the property and the contents; in most cases those living in rented accommodation will find that the landlord has insured the building but, even so, contents insurance is important so that personal items are covered in the event of loss or damage.

 

Home insurance protects against a number of potential risks and, even though thinking about these is not pleasant, it is nevertheless essential to make sure that the level of cover is adequate for all eventualities. Property is vulnerable to burglary and to accidental damage by fire or water – electrical supplies, wiring and appliances can and do go wrong; pipes are known to burst and cause flooding. Then there are natural disasters that affect homes, where structural damage can result. With inadequate or, worst of all, no protection, householders and flat-dwellers are at the mercy of thieves, the elements and accidents. Not having insurance, or having too little, is undoubtedly a false economy.

What are the Benefits?

Luckily, home insurance at the right level goes a long way to help out in the event of an unfortunate occurrence. This is why, for example, mortgage lenders insist on building insurance – if an uninsured home burns down they will lose their investment in the property. With the right protection, there is some comfort in the fact that carpets and furniture can be replaced, and that the value of other stolen items can be recovered.

Policies vary according to a number of key factors and normally insurers will offer quotes for premiums based on individual circumstances. Some insurance policies will cover people who are visiting a property and suffer an accident – a trip or slip that results in them breaking an arm or a leg, perhaps. With contents insurance, significant items will have to be valued and the basis on which the insurance is arranged can vary according to the fine print. It always pays to ensure policy documents are completely understood and the level of insurance provided will not leave claimants out of pocket in the event of an unfortunate incident.

 

 

 

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