At its simple best, insurance offers a source of protection against risk in exchange for a small, regular premium. It insulates the client’s property from damage by fire, flood or accident and the client himself or herself from illness, injury or death – just to offer a few examples. Indeed insurance can be taken out to protect any person or thing from almost any calamity or mishap. Individual items can be insured, as can pets, as for that matter can a footballer’s feet or a pianist’s fingers.

Do I Need It?

Some insurance is obligatory. Drivers need insurance by law and mortgage lenders insist upon buildings insurance. On top of this it is always a good idea to take out life cover, if only to meet unanticipated funeral expenses, and sometimes also to acquire protection against illness, accidents, unemployment, theft, damage and for unforeseen expenses when traveling.

Choosing a Policy

Different insurance providers will offer different levels of cover at different prices, so it is always useful to shop around for the best price. Equally important though are the terms and conditions, and it is always advisable to make sure that the terms being offered match up to your requirements. Sometimes a policy is cheaper because it contains exemptions or caveats, so be ready to read the fine print.

Making a Claim

Take care to ensure that the insurance provider you choose has an established reputation for paying out against legitimate claims. All insurers will make checks to make certain that the agreed criteria have been fulfilled before paying out on a claim, but it is important to avoid unscrupulous providers who look for technicalities to allow them to renege. Peace of mind is every bit as important as a low premium, and a few simple checks are all that is needed to confirm the bona fides of the company you are doing business with.