So why do people in general purchase insurance?
I hear it so often that the general attitude towards insurance is that it is purchased because you are told you must have it! Well it may be true that you are required to purchase compulsory Automobile Insurance - The Province or State we reside in, says we can not drive without it. You are also required to purchase Home Insurance or Tenant Insurance as the bank or landlord require it!
This is all true, but let's have a different look at insurance! I will avoid Automobile Insurance because it is heavily regulated by the government.
So why buy home insurance or tenants insurance? Most people feel it is to protect their home and personal belongings in the event of a loss. So that is definitely a monetary reason. What about if you get sued for your negligence?
Example: You are in your back yard mowing your lawn and a rock in your grass is picked up by the lawn mower and flies out severely injuring someone. The injured party is going to sue you because you were operating the lawn mower and the rock in your grass should have been removed before using the lawn mower.
So in the scenario, you are now being sued. Did you know that this law suit can be covered under your personal liability policy, which forms a part of your Home or Tenants Insurance? Not only could your policy cover the judgement against you, it can also cover any legal fees involved with the court case. Decent lawyers these days can charge upwards of $300 for services, and if they are required in court, a lot more.
This is one of the many things to look at when purchasing insurance. The liability coverage on its can be priceless compared to losing your home in a fire.
I hope this can give some further insight to your next purchase of insurance.
I look forward to hearing any comments or feedback to any of my posts. Please drop a message on this site or send me an e-mail at smcnamara@petleyhare.com
Sean McNamara
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