While we all hope nothing bad happens, insurance helps us deal when bad thing like floods or fire happen. There are multiple forms of insurance -- property insurance, contents insurance.
flood, earthquake, fire, theft
Insurance is a way to share the risk. We all pay a little and the unlucky ones got a little help back.
You can reduce your insurance costs several ways. Insurance companies will reduce their rates if you do certain things to reduce your risks. Check with your insurance company. Some of the things that can make a difference are alarm systems, creating and participating in a neighborhood watch program, making changes based on an inspection. Some companies will give you a discount if you get multiple kinds of insurance (home, auto, business, etc.) through them.
The amount of compensation you will receive for damage can vary. There may be a maximum amount of insurance. Also, the value of items can be calculated several different ways:
- purchase price (not used for most insurance)
- current value (could take into account increases in value or depreciation)
- replacement value