Insurance enables you return to the position you where before the loss. This is why people take out insurance cover and pay premiums that, in the event of loss occurring on the insured risk the insurance company pays claim.
However, taking out insurance do not mean the insured should leave him or herself loose because insurance company will pick the bills should the unexpected happens.
Rather, the insured should while having taking insurance cover, take necessary precautions against such losses happening. The reason is that even though the insurance company will come to pay, the time between when the loss occurs and the time of replacement of the asset or rebuilding in case of a house; the trauma and psychological impacts; what if there was loss of life?.
The whole idea is that with or without insurance, take extra steps to protect your assets against loss.
An insurance experts discussing on risk management recently said the best insurance is that the insured takes precautionary measures against a loss.
According to the expert, even when the insurance company pays the claim, the insured suffers the bigger loss because of physical and psychological trauma associated with the loss.
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