Basic Principles of Insurance

Insurance industry, both general insurance and life insurance, have the principles to guide the implementation of insurance activities wherever located.

Insurable Interest
You said to have the interests of the insured object if you suffer financial loss in case of disasters that cause loss or damage to the object. Financial interests allows you to insure your property or your interests.
In the event of disaster for the insured object and prove that you do not have a financial interest of the object, then you are not entitled to receive compensation.

Utmost Good Faith
What this means is that you are obliged to inform clearly and accurately about all the important facts related to the insured object. The principle of the program to explain the risks that are guaranteed and which are excluded, all terms and conditions of coverage are clearly and accurately. The obligation to provide important facts apply:
Since the agreement of the insurance contract insurance contracts be discussed until completed, ie when we approve the contract. At the time of renewal of insurance contracts.
In the event of a change in insurance contracts and on matters that are related to those changes.

Indemnity
If the insured object exposed to the disaster that caused damage we will pay compensation to restore your financial position after the loss to be equal to the moment before the loss. Thus you are not entitled to damages greater than the losses you suffered.
Example:
Vehicle market price of 100 million dollars, insured for 100 million dollars. Case of natural disasters so that the vehicle is:

1. Lost, and the market price of the vehicle at the time:
* 100 million dollars, then you will receive compensation of 100 million dollars,
* 125 million dollars, then you receive compensation for the insured value, ie 100 million dollars,
* 75 million dollars, then you receive compensation for the market price, which is 75 million dollars.
2. Damaged by accident, then the cost of repairs, replacement parts, labor workshop will be entirely our responsibility so that a maximum of 100 million dollars.
Some of the compensation payment that apply:
Payment in cash, or
Repair, or
Replacement or
Remediation.

Subrogation
Subrogation principles stipulated in Article 284 of Act Book of Commercial Law, which reads: "If an insurer has to pay full compensation to the insured, the insurer will replace the insured in any case to sue a third party who has caused loss to the insured".
In other words, if you are experiencing losses due to negligence or a third party and we, after providing compensation to you, would you replace in a file charges to third parties.

Contribution
You can only insure the same property to several insurance companies. But when there is loss of the insured object then automatically applies the principle of contribution.
Contribution principle means that if we had paid full compensation you're entitled to, then we reserve the right sue other companies that involved an insured (jointly insurance your belongings) to pay part of their losses in the amount equal with the amount of coverage of the closing.
Example:
You insure single unit residential buildings for 100 million dollars to the three insurance companies:
PT Insurance A = USD $ 100,000,000.00
PT Insurance B = USD $ 50,000,000.00
PT Insurance C = RP 50,000,000.00
Total = USD 200,000,000.00

When the building burned down (total loss) then the maximum compensation you get from:
PT Insurance A = (100,000,000 / 200,000,000) x 100,000,000 = Rp. 50.000.000,00
PT Insurance B = (50,000,000 / 200,000,000) x 100,000,000 = Rp. 25.000.000,00
PT Insurance C = (50,000,000 / 200,000,000) x 100,000,000 = Rp. 25.000.000,00
Total = USD 100,000,000.00
Means the amount of compensation you receive from the insurance company 3 is not USD. But USD 200,000,000.00. 100,000,000.00 according to actual house prices.

Proximate Cause
If the interests of the insured suffered natural disasters or accidents, so first we'll look for the causes of an active and efficient driving an unbroken chain of events that ultimately there are natural disasters or accidents.
A principle which is used to find the cause of loss of active and efficient is: "Unbroken Chain of Events" is a series of chain of events which are not interrupted. For example, the case of personal accident claims the following:
Someone walk in highway driving at high speed so that the car out of control and overturned.
Seriously injured and taken hospital.
Not long after the victim died.
Of the incident is known that the victim cause proximate driving at high speed so the car out of control and overturned. Through the proximal causewill be known whether the cause of the accident or the accident is guaranteed in the condition of the insurance policy or not?

Insurance History - The Concept of Insurance

The concept of insurance is already known from the days before BC when humans at that time had saved her life from various threats, including lack of food.

One of the stories about food shortages occurred in the days of ancient Egypt during the rule of King Pharaoh. One day the king dreamed that defined by the Prophet Joseph that for 7 years this land will have abundant harvest, followed by times of scarcity during the next 7 years. To guard against famine is King Pharaoh followed the advice of the Prophet Joseph to set aside part of their harvest in the first 7 years as a food reserve in times of scarcity.
Thus, during the 7 years of famine the people of Egypt to avoid the risk of a great famine that struck the country.

In the year 2000 BC merchants and actors in Italy Collegia Tennirium forming a type of insurance agencies that aims to help the widows and orphans of deceased members. Similar associations of Collegia Nititum, then stood with members of the conjunct thrall to the army of the Roman empire.

Each member collects a fee and if one member had the misfortune (Unfortunate) the funeral expenses will be paid by the members of the lucky (fortunate) by using funds that had been collected previously.

Such association is one of the early emergence of the concept of insurance, namely those who are lucky or good fortune to help the people who are not lucky.

Definition of Homeowners Insurance

Homeowners insurance is one of the most important insurance that you can buy. Along with health insurance, vehicle insurance and life insurance, homeowners insurance is a must have. Homeowners insurance protects your house and most of the things in it from theft, vandalism, disasters such as fire and wind. Like most insurance, the premium must be paid for your insurance to be active.

Homeowners insurance is required if you rent your house through a mortgage. Home insurance policies are term contracts, which means an active policy for a certain period. A premium must be paid each term for the policy to remain valid. Homeowners insurance varies by company, policies and location of your home. If your house is located near the house fire, you might rate lower than most.

It is important to know that some types of situations, such as floods and war activities (sometimes referred to as a nuclear explosion) and earthquakes are not covered by homeowners insurance policies typically. Must be protected from fire damage, especially the premium costs should be paid along with smoke detectors and fire systems installed at the location.

Currently there are six types of homeowners insurance is currently available. They are, in order: the basic policy, public policy, all risk homeowners policy, renters insurance, condo policies and old houses. There are also four classifications coverage. They are, in order: place to live, other structures, personal property and loss of use / additional living expenses.

Basic homeowners policy protects the 11 listed hazards, some of which are: fire, windstorm, vandalism, theft, damage resulting from vehicle or aircraft, and explosion. Floods and earthquakes are not included in this policy. A homeowners policy protects against 17 broad danger, also including all of the basic policy. Type of policy is more expensive than the basic one. An all risks policy is most commonly used, it provides "all risks" coverage with a few exceptions, including floods and earthquakes.

Homeowners insurance is a must have when you own your own home. Think of all the events that may transpire that will make your home in danger. The list seems endless, and maybe this. Most houses are worth more than $ 150,000, and a fire or a tornado could destroy it in a few minutes. Homeowners insurance provides peace of mind that whatever happens, you will be compensated for your loss. For many people, their dream is to one day own their own home. Once destroyed your dreams will send people into depression attacks.

Homeowners insurance is also quite cheap compared with other forms of other insurance, a homeowner in good locations can expect to pay at least $ 500 a year for full coverage. While interest rate rises on the beach far away, to the tune of $ 3000 per year. However, there is no price that you can put your house and all the treasures in it.

About Home Insurances

Home insurance, commonly abbreviated as a threat to insurance or homeowners insurance (often in the real estate industry as Hoi, is the type of property insurance that covers private homes. This is insurance that) the protection of personal insurance, the loss of their homes itself, its contents, loss of use (additional living expenses, or may include loss of personal belongings other than the owner of the house, and combine accident insurance can happen in the apartment. This requires that at least one of the named insured is occupying the house. Housing policy (DP ) is similar, but for home, for various reasons do not qualify as a void / non-residential, seasonal or secondary residence or age. This is a multi-line insurance, which means that it includes property and responsibility is divided, with premium , which means that the single premium paid for these risks. Standard forms of coverage gaps in various categories, and the cover is usually given is the percentage of Coverage A, which. Insurance itself is a long contract, and the names, what and what will not be paid in case of various events. In general, claims from floods or wars, the definitions (usually including a nuclear explosion) are exempt from any source. Special insurance can be purchased for these possibilities, including flood insurance. Insurance is up to the present and existing value, which will be updated for inflation to rise or fall, and assessments paid by insurance added to the policy premiums. Insurance fire will require a special premium costs, and meet the additional requirement of smoke detectors and the fire system.

The house insurance is a contract, usually a fixed-term contracts, which is, in fact, for a certain period. Payments to the insured the insurance is called a premium. The insured must pay the insurance premium each term. Most insurance companies free of charge a lower premium if it appears less likely the home will be damaged or destroyed, for example, if the house is located next to the fire station is located, if the house is equipped with a sprinkler system and fire alarms. Eternal insurance, a kind of home insurance without a fixed term, may be achieved in certain areas.

Borrowing in the United States, most home buyers money in the form of mortgages and mortgage lender always requires that the buyer purchase homeowners insurance as a condition for loans to protect the bank if the house were destroyed. Each person should have an interest in the insured property will be listed on the policy. In some cases, would ignore the mortgagee mortgagor emphasized the need of household insurance, if the property value exceeds the amount of the mortgage balance. Did not interfere in a case like this even the total destruction of entire building, the ability of the lender to seize and recover the entire amount of the loan.

Insurance crisis in Florida means that some owners in the water, also have to make this decision because of the high premiums.