Frequently Asked Questions

Insurance is a contractual arrangement where an individual or entity (the policyholder) pays a premium to an insurance company in exchange for financial protection against specific risks. In the event of a covered loss, the insurance company agrees to compensate the policyholder according to the terms and conditions outlined in the insurance policy.

An insurance premium is the amount the policyholder pays for coverage and is determined by several factors, including:

• Risk Factors: Age, insurance history, location, building occupancy, distance to fire halls and condition of the property all play a part. Higher risks often result in higher premiums.
• Coverage Level: The extent of coverage chosen by the policyholder.
• Deductible: The amount the policyholder agrees to pay before the insurance coverage kicks in.
• Policy Limits: The maximum amount the insurance company will pay out for a claim.

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Insurance gives you peace of mind by providing a financial cushion when life throws you curveballs. It ensures that you won’t face massive expenses on your own if accidents, natural disasters or other unexpected situations arise. Having insurance means you’re better prepared for the unexpected and can focus on recovery instead of worrying about financial burdens.

A deductible is like your contribution to a claim. Let’s say your policy has a $500 deductible and you have a covered claim for $1500. You’d pay the first $500 and the insurance company would cover the remaining $1000. Choosing a higher deductible can lower your premium, but you’ll pay more out of pocket if a claim occurs.