Insurance cannot prevent something bad from happening. But it helps us recover financially if something does happen to something we value.
When you buy insurance, you pay a premium. Your premium joins a pool of premiums from other policy holders. The money from this pool is what is used to pay your claim if the insured event occurs.
Once you lodge a claim, depending on the type of policy you took, the insurance company will come in and assist through rebuilding/repairing, replacing, providing cash settlement or any other form of compensation as per policy agreement.
Insurance Companies also need insurance to be able to cover the risks they have insured, this is called Re-Insurance.
Join the Fun
In this game, you will see images of things that can wipe out our homes and the things we value.