Why is it necessary to retain an insurance lawyer?
What is insurance?
Insurance serves as a financial cushion in the event something bad happens to the insured person – also referred to as the policyholder – and their assets.
In layman’s terms, insurance is a written contract between a person and the insurance company that puts the responsibility of paying for losses that the insured incurs on the insurer. This is given that the incident is specified as a covered event and the policyholder meets regular payments.
What are the most common types of insurance?
Individuals and businesses searching for some form of financial protection can choose from a diverse range of insurance policies, with each catering to different clients’ unique set of coverage needs. This section details what the most popular types of insurance available in the market cover.
1. Auto insurance:
To operate a vehicle, it is almost always mandatory to carry car insurance. Getting caught driving without one can result in hefty fines and affect future eligibility for obtaining coverage.
Auto insurance is designed to protect motorists against financial losses in the event of accidents or theft.
2. Home insurance:
Home insurance, also referred to as homeowners’ insurance, is not required by the law. Most lenders, however, set it as a condition for taking out a mortgage.
Homeowners’ insurance may work differently, depending on several factors, including where the house is located.
3. Health insurance:
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Health insurance policies are aimed at helping policyholders offset the costs of medical treatment by covering a portion of the professional and hospital fees incurred.
According to the US government’s health insurance exchange website HealthCare.gov, this type of coverage comes in several forms designed to meet the varying needs of the insured.
4. Life insurance:
Often confused with health insurance, life insurance plans provide a tax-free lump-sum payment to the policyholder’s family after they die.
What are the benefits of taking out insurance?
By now, it should be clear how important insurance is in protecting people and businesses financially. Having the proper coverage can help policyholders recover faster from unforeseen accidents and calamities by providing the monetary means to rebuild their lives. But one of the biggest benefits of taking out insurance is having the peace of mind of knowing no matter what happens, you are financially protected.
Why is it necessary to retain an insurance lawyer?
Insurance lawyers are individuals who protect their clients’ rights over the course of an insurance claim. There are many unsavory insurers and claimants, which means hiring an insurance lawyer is critical to anyone navigating the claims process.
They also handle several aspects of an insurance claim. From accident or damage reconstruction to negotiations, an insurance lawyer will ensure that their clients do not pay more or receive less than what they deserve.