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. This premium joins a pool of premiums from other policy holders. The money from this pool is what is used to pay you if the insured event occurs and you claim from the insurance company. The risk is therefore spread among a large group of people.
Insurance Companies also need insurance to be able to cover the risks they have insured, this is called Re-Insurance.
Once a claim is lodged, 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.
If your insurer does not pay your claim and you are unhappy with their decision, you can contact the Insurance Regulatory Authority via firstname.lastname@example.org or toll free number 0800724499