Insurance is a way of protecting yourself, your family or your business from financial loss by transferring or distributing risk. The entity providing insurance is known as the insurer while the one receiving insurance is the insured. The person seeking insurance pays the insurer in exchange for a promise of compensation in the event of loss. There are many types of insurance one can take depending on their financial status and preoccupation. Here are 10 cost-effective types of insurance.
10. Fire Insurance
Fire insurance is a type of property insurance that covers damage caused by fire. The insurance policy would cover the cost of replacement and reconstruction of the property razed by fire or even cash reimbursement. The insurer can only cater for the damage set by the policy. This depends on the amount and frequency of payouts made before the fire.