In order to develop a proactive financial plan, insurance coverage needs to be an important part of the equation. Some people fail to insure themselves against the risks that are all around us, or they do not have the right type of coverage. If this situation is allowed to continue, they could be at risk of losing their home, family vehicles and life savings. For this reason and the reasons described below, it is important for you to have the right insurance coverage to live comfortably in Katy, Texas.
Transferring the Risk from Yourself to the Insurance Company
When you purchase an insurance policy, you are transferring the risk of experiencing a financial loss to your insurance company. In order to be ready to meet their financial obligations, insurance companies charge their customers insurance policy premiums and maintain cash reserves to pay for their customers’ claims.
For example, Katy is in an area that experiences tropical storms and hurricanes. If you neglect to purchase home owners insurance, you could be at risk of losing your home to violent weather or other disasters. In Harris County, hurricane Ike caused a total economic impact (loss) of $103.8 billion with many homes heavily damaged or destroyed. Unless you have a large sum of money set aside to repair or rebuild, you and your family would be without a home. On the other hand, if you have a Katy insurance home owners policy, the insurance company would bear most of the cost of rebuilding or repairing your home in the event of destructive weather.
To Repair or Replace Damaged Property
It benefits you to insure expensive property like your home and automobile. For the price of a premium, you do not have to use your hard earned savings to repair or replace these items if they are damaged, destroyed or stolen.
Each year more than 40,000 deaths and 3 million injuries are caused by auto accidents. When you have car insurance, you, your family and your vehicle are protected. You can file a claim with your insurance company, and they will pay the majority of your medical bills and the cost to have your vehicle repaired or replaced.
Protecting Your Business Interests
A business is subject to certain risks, and you can insure against these risks with business liability insurance. If you fail to get coverage, you could be at risk of losing your livelihood in the event that an injury or fatal accident occurs on your property. As the business owner, you may be responsible for paying for medical bills, lost wages, pain and suffering.
Business liability insurance also protects you from having to possibly pay a large monetary award. In the event that you are the subject of a lawsuit, your insurance policy will pay for your legal defense, court costs and any monetary award if you are ordered to pay.
Keeping Your Family and Home Safe
Purchasing a life insurance policy is a very important decision if you have a family that you want to protect. If you were to die unexpectedly, your spouse and children would no longer receive your financial support. They may lose the home they live in because they cannot afford to pay the mortgage and all of their other expenses.
You can prevent the above scenario from happening to your family by purchasing life insurance. As long as you pay your premiums, your family would receive a check for the value of the policy in the event of your death.
The danger also exists that you could be incapacitated for several months due to illness or an injury. This experience would put you and your family at serious risk of having to live on your savings until you recover. To protect yourself against this unfortunate possibility, you can also purchase disability income insurance.
To get information about your options, contact a knowledgeable insurance agent to fully understand the best approach to protecting your home and family.
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