Home owners insurance quotes
In a Laymans terminology risk means uncertainty. Whereas, in Insurance risk stands for a peril to be insured against fire or accident. The dictionary meaning for risk is chances of injury, loss or damage.
Uncertainty: The Concept
Risk arises out of uncertainty. If uncertainty is known there is no scope for risk. For example: Someone is travelling on national highway. It comes to his notice that by using bypass route he may be looted, he will never take that route. Here as the uncertainty is known there is no scope for risk. Few more examples are:
Risk - A danger in a dark street is a risk for a common man.
When risk is expected to be possible, its probability can be either zero or one. It is neither impossible nor definite. Deviation from expected result is infact the risk.
Risk can be of many types. They are like:
1. Pure Risk : They are risks which insurer offers to the insured. There is only a possibility of either loss or no loss. For example: Someone takes insurance policy for his motor or factory. Chances are, there can be fire in the factory or may be that policy can go claim free. Motor can meet with an accident during currency of policy or may go claim free throughout the currency of policy. But one gains out of this incident.
2. Speculative Risk: These risks are the risks that are denied by the insurance companies as the possibility for gain is at one end. For example: A person may purchase shares and the value may rise later & he makes profits.
3. Particular Risk : These risks are risks suffered by individuals. For example: due to loss of property due to fire, accidents, theft and any other particular kind of risk.
4. Fundamental Risk : They are not personal risks, hence can be termed as group or impersonal risks. For example: Economic, social & political risks. They impact the society as a whole in the form of unemployment, inflation etc.
5. Dynamic Risk : These risks arise due to change in the economic conditions in society. They are less predictable than static risks. For example: Changes in price level, income and output, consumer taste and technology cause changes in choice and the economic condition of the society.
6. Static Risk : These risks occur even when there is no change in the economy. They are static in nature. For example: Dishonesty in an individual.
Characteristics of Insurable Risk:
The subject matter of insurance is : any legal right that is arising out of a financial relationship under law, between insured and the subject matter of insurance.
a. Insurable Risk should be in terms of money: This means that the subject matter of risk in course of any incident that causes loss should be measurable in terms of money as it is easier to estimate the exact amount of loss incurred in monetary terms.
b. There should be pure risk: The nature of risk must be pure, as there should be a scope for either loss or no loss in the event of a risk.
c. It should note against public policy: This means the nature of the insurable risk must be within the limits of legal conditions & public policy so that it can be governed by the court of law in event of any discrepancy in opinions or the conditions of insurance.
d. Existence of subject matter of insurance: It is necessary for the subject matter of insurance to be present in the event of any loss. As depending on the nature of subject matter of insurance the loss is measured.
e. Occurrence of incidence should be accidental: For instance the cause of an incidence cannot be due to any other reason other than the occurrence of an accident as per the terms and conditions of the insurance contract.
f. There should be some property, potential liability, right or interest that is capable of being insured: The subject matter of insurance should be capable of being insured. For the same reason it should posses the characteristic as above.
g. The insured must stand to loose incase property is damaged: In the event of loss the insured must be in a position to bear any potential loss involved that is outside the insurance contract. In others words the insured must be ready to take up risks.
h. Existence of a legally enforceable relationship: Legal entity & law bind any insurance contract. An insurance contract can be called one only when the relationship between the insurer & the insured is of legal nature.
Thus, the above are the characteristics of Insurable risk.
Indian General Insurance quotes to cover property
Property Means ones right over a particular thing or object, the right to possess, use & dispose or transfer of ownership.
Property & its Types:
Property can be commonly classified into either Real property or Personal property.
Real property applies to land and items attached to land such as a house or a tree.
Personal property comprises all other property.
Real Property:
Real property is applied to
a. unimproved land &
b. Improved land.
Unimproved land is real property that does not include permanent improvements.
This land may contain valuable resources such water, mineral resources, tillable soil, growing timber, or wildlife. The owner of unimproved land is still exposed to a reduction in land value through perils such as earthquakes, fire, flood, erosion etc.
Improved land is real property that contains something of additional value, such as structures affixed to it. These structures include not only buildings but also tangible property such as in-built swimming pools and equipment, underground sprinkler systems. Septic tanks, wells, paved driveways and walks.
Houses and dwellings are real property. Dwellings include not only living space but also excavations, foundations, pipes or other supports like plumbing and heating systems.
Fixtures are personal property that become part of the land or dwelling when installed or attached to it, In general personal property cannot be removed from a land or a building without damage being caused to the land or building. For example: Custom-ordered drapes and wall lamps may be considered as fixtures attached to the dwellings. But standard curtains, floor lamps are not fixtures.
Personal Property:
Personal property includes all the other properties that are not real. This property can be either tangible or intangible and can be possessed by one.
Tangible property is that property that can be touched physically. For example:
Furniture, clothing, money, securities, automobiles etcK
Intangible property is that which cannot be felt. For example: An insurer's promise under a insurance contract, a copyright, back deposit etcK
Insurance Contracts & Properties:
Ownership of a property exhibits the right of the owner to own or possess and enjoy the rights of that property. The owner also has the right to transfer use by sake and the obligation to pay outstanding debt on the property such as municipal tax or a mortgage on the property.
Possessing legal ownership of the property without actually owning it is termed as bailment.
The person giving the possession is known as the bailer and the person receiving the possession is known as the bailee.
For example: When A lends his lawn mover to his neighbour B, A is the bailer & B is the bailee. Bailment has three elements to it, they are:
Transfer of personal property possession without transfer if title.
Acceptance of possession by the bailee.
Express or implied agreement of the bailee to return the property to the bailer or to a person the bailer designates. Personal property can associated with an individuals or familys business. For example: to a property of an individual kept in another location such as a painting or a business property at ones home such as a file etc.
Some properties that a person can possess are listed as below:
1. Factories.
2. Shop, Go downs.
3. Industries.
4. Household goods.
5. Machines.
6. Automobile.
7. Cargo.
8. Ships.
9. Airplanes.
10. Arms & Ammunition.
11. Apparels.
12. Real Assets.
In other words a person can have both movable & immovable properties. Immovable means real assets and movable means vehicles etcK.
So as to explain the various kinds of properties that can be possessed & their insurance options.
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