INSURANCE AS A TOOL TO PREVENT AND REDUCE RISK OF LOAN LOSS AND REAL ESTATE MANAGEMENT

INSURANCE AS A METHOD OF LOAN SECURITY AND UTILIZATION AND REAL ESTATE ADVANCEMENT 

In this article, we shall be considering several factors that will help us build a better insurance policy relating to loan and Real Estate. But first lets highlights the keywords in this context:

1 Insurance

2 Tool

3 Risks

4 Loans

5 Real Estate

1 Insurance is a risk transfer mechanism that protects you of uncertainty or un foreseen events. Ever since, man has devised several ways to gain relief from losses when they occur, this is a pointer to the fact that man certainly does not like the burden of risk bearing and thus desire to transfer it. Insurance helps humans in diversity of life in the areas of life, marine, property /casualty, traveling, health and many others. Insurance will continually be important and necessary because man cannot bear all the risk alone.

   

Insurance is an arrangement by which an insured transfer its risk to the insurer at an adequate fee called premium on the concrete agreement that the insurer (insurance company) will indemnify or compensate the insured for the occurrence of the insured event in simpler form we can say:

a Insurance involves the transfer of risk

b Insurance is based on promise and agreement

c Insured shall be indemnified or compensated

d A premium must be involved.

2 Tool: According to Business dictionary.  An item or implement used for a specific purpose. A tool can be a physical object such as mechanical tools including saws and hammers or a technical object such as a web authoring tool or software program. Furthermore, a concept can also be considered a tool. "Creativity is the tool which allows a child's mind to grow."

Read more: Best Personal Loan Rates 2019

More also, a tool is something that serve a purpose either for repairs or as a medium for ensuring something is been done. When we relate this context in insurance, we can clearly say Insurance is a tool to get things done or probably insurance serves as a repair to something broken or may likely break and when it eventually does, insurance should serve as a tool if you as an insured insures you car against accident through an insurance company by buying a premium, when this event (car accident) actually occurs, insurance serve as a toll to redeem, indemnify, or compensate you on such loss.

Tool here means insurance used as a medium for insurers to connect with the insured and agreements that must take in place for this to be valid.

3 Risk: Risk is uncertain, expected and unexpected in which its end–up dangers are loss. Risk takes place in every human activity and has made it a source to worry for the inquisitive minds. Life itself is risk and high uncertainty of any event. Risk exist whenever the future is unknown, stressing the fact that everyone is a risk manager not necessarily willingly but by necessity.

In simpler form, we can say Risk is:

A The objective doubt concerning the outcome in a given situation

B Risk is the possibility of an unfortunate occurrence.

C Risk is unpredictable, the tendency that actual result may differ from the predicted result.

4. Loan: What we mean by loan is a sum of money a person borrows from a lender in actual agreement to pay with an interest in which a stipulated time is given of which when the borrower exceeds such time limit may warrant an increase in the loan interest or a fine which also might lead to a breach in the terms of agreement.

There are different purpose of collecting a loan of which at the end side of it should be one which can produce an additional income for the borrower or serve as a relieve in certain areas the borrower is in need of. A loan has a high risk of loss where the intention of collecting a loan is not achieved leads to debts or been prone to unexpected hazards and events such as robbery, Loan insurance is an aspect that is very crucial because man does not want to face the risk of losing any property therefore sort for ways by which the occurrence of loss can be transferred to a party which will help cover the whole loss or at least a part of it.

5 Real Estate Management:  Lawyers, law firms and real estate agents come to place when Real Estate Management is involved. A real estate agent serve as a middle man between the owner of a property   and the proposed buyer of the property. 

It is most times on lease where the estate owner offers his/her property for a given period and a sum to be paid by the lease. And other times, it is based on a monthly,  quarterly payments where the intention of the lease is to buy the property on an agreement usually a legal agreement between the buyer, lessor, and the agent usually lawyers. This is where the lawyers come in and they involve In activities like:

. Issuing documents as it relates to transfer of ownership without which every contract is legally invalid

. Standing for the party that was denied rights and amending every breach of contract

. And many other functions

Let’s now come to the topic of this article which is insurance as a tool for loan utilization and real estate management or Insurance as a tool to prevent and reduce risk of loan loss and utilization and real estate management. Now let’s break it down

1 insurance as a tool for loan utilization

2 insurance as a tool that helps in real estate management

1 insurance as a tool for loan utilization: having discuss briefly about loan, insurance helps an individual or a business organization to utilize loan for which the purpose of the loan must be observed and risk prevented. 

This is designed to help policyholders by ensuring support financially majorly in time of need whether this was due to disability or probably unemployment, taking up a loan insurance helps cover up your monthly loan payments and gives you protection from risk that any occur. In Britain, the loan policy comprises of different terms which are unemployment insurance, redundancy insurance premium or sickness insurance while in the US it is mostly called PPI which stands for Payment Protection Insurance.

HOW DOES THIS LOAN UTILIZATION WORK

Loan Insurance helps the policyholders meet their monthly debts upto the predetermined amount. It’s usually on short term basis ranging from 12-24 months and also depends on the insurance company and policy. The benefits attached to this policy can be utilized properly to clear off personal loans, credit cards, or car loans and this policy are for people usually from 18-65 who are on-job at the time the policy was taken up. For this policy to be effective, the purchaser has to be employed working at least 16 hours a week on long term basis or be a self employed for a specific period of time.

In essence we are saying Insurance helps in loan utilization by:

 a In tough times, loan insurance will take care of the outstanding loan amount in the case of death or disability resulting from a sickness or accident and also in-case you lose your job and by this it has helped you utilize your loan before and after usage.

b Incase of a credit life insurance, it pays off all or some of your loan if you die.

c Insurance as a tool that helps in Real Estate Management

WHAT  IS REAL ESTATE : Real estate is anything that consist of land and building, natural resources (crops, water or minerals) or housing in general. A real estate may contain either a single family or multi family structure that is available for occupation or for non-business purposes.

Real Estate Management: This is the control, oversight and operation of Real Estate. Real estate management indicates the need to be cared for, monitored and accountability given to its useful life and condition. In other words, Real estate management involves taking care of, maintaining, renovating and ensuring the property is been to put to order.

2 Where does insurance come in as a tool that helps in Real estate management?

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Insurance provides coverage for those who own properties who have lease or rent building space for offices, services business or retail stores. His real estate policy usually includes replacement insurance terms for reconstruction costs of repairing or rebuilding real estate that is damaged. In other words, real estate insurance is insurance of property, law and buildings. Source: Collins English dictionary

Insurance provides protection against most risk thereby when such events as fire, theft, and some weather damage occurs, insurance will help recover or replace any damages. If you own a real estate then having an insurance coverage for it will help you manage your property

(Read: Property insurance)

Most real estate insurance taker usually choose a specific amount ranging from a million – two million dollar on an average of $882.12 and this include general liability and property insurance. We shall be discussing this topic vividly as it is very broad and needs updating. Having discuss insurance involving in loan utilization and real estate management, we can now realize having insurance policies to help in real estate management and utilizing our loan is very important.

Feel free to drop your comments, and suggestions

THE NECESSITY OF FULL CAR INSURANCE COVERAGE

THE NEED FOR FULL PROTECTION FOR YOUR CAR

Insurance companies carry out a duty to offer coverage to the insured based on their premium or terms of agreement. First of all, we have to understand the concept “coverage”.

Insurance coverage is the amount of protection an insurance company offers based on an insurance policy. It is the manner in which an insurance company covers its policy holder in a particular area. Its extent of the coverage is to provide protection against risk or liability for an individual or entity by way of offering insurance services for example the life insurance covering area of life, auto insurance covering area of cars, vehicles and it is usually for unexpected or unforeseen occurrences.

 Having an idea about it, let’s look at the types of car insurance coverage based on our article topic:-

TYPES OF CAR INSURANCE COVERAGE

1)   LIABILITY INSURANCE:- This kind of coverage is carried out when an accident occurs. The insurance company will look into the event and determine the accident, if it was as a result of your actions. The insurance company will cover the cost of repairing the property damaged as well as medical bills that arises as a result of the accident. Most insurance companies have certain requirements for the amount of liability insurance coverage that every driver or car owner must have but it is usually a good idea to have liability insurance that is above your insurance company requirements for you to be guaranteed full protection even above your limits.

  

  2)   COMPREHENSIVE COVERAGE:- This type of coverage is very necessary because you can never tell who will be taking you to a law court for probably killing his/her dog, goat or anything or perhaps there was a storm (Weather damage) that hit your state and therefore destroyed your car. In this coverage, you are safe with it comprehensive coverage covers accident that aren’t related to a covered accident.

3)    COLLISION COVERAGE:- This kind of coverage covers accident relating to repairs of your car to its normal state. Where the cost of repair exceeds the value of your car in an accident, collision coverage will pay the value of your own car.

Please Note: if your car is old it will be advised not to carry collision coverage on the other hand if your car is new or expensive, collision coverage will help you get it back to the normal state.

4)   PERSONAL INJURY PROTECTION:- Comprehensive coverage covers incident not related to a covered accident but what the personal injury protection covers is really worth buying, adding both to get full insurance cover. The personal injury protection covers you for additional expenses that may occur as at the time of the accident like injury to passengers, or people involved in the accident, medical bills no matter who is at fault.

5)    UNINSURED/ UNDER INSURED MOTORIST PROTECTION:-In this coverage, if you are legally responsible for damages related to an accident you won’t receive any payment if they do not have a coverage or probably the insurance company will want protection would help with the expenses.

FULL CAR INSURANCE COVERAGE

There are different car insurance coverage in insurance company are willing to offer but most of these companies do not offer you a full coverage in every circumstances but deciding you want a full coverage then you will get a full coverage. Full coverage does not only covers you for your liability but damage to your car as well. We have carefully explained the types of car insurance coverage above, so having an understanding of what they are then a full insurance coverage is the combination of:

a.     Liability insurance

b.     Comprehensive insurance

c.      Collision insurance

d.     Personal injury protection (PIP)

e.      Uninsured/underinsured motorist protection

The above mentioned coverage’s are expected to cover:

1)    Your injuries and that of your passengers probably if you are hit by an uninsured motorist up to the limits of your uninsured motorist policy.

2)    Your injuries and that of your passengers when you are at fault

3)    Your car, up to its fair market value minus your deductible, you are at fault of the other driver does not have insurance or if it is destroyed by a natural disaster or stolen

4)    The damage caused by you on others up to having a full car insurance coverage doesn’t necessarily mean every aspects must be covered weather valuable or not. There are certain cases your insurance company will not like to cover in the full car insurance coverage because of the high end risk and this may include:

             

a.     When you use your insured car for racing or other speed contest

b.     Use in car-exchange programme

c.      When your car is been destroyed or confiscated by government

d.     Using your vehicle/car for business use

e.      Intentional damaging your car

f.       Nuclear contamination

g.     Tire damage

h.     Items stolen from the car

i.       Wear and tear

j.       A rental car while your own is being on repair

Please note: A liability insurance is a must for every driver in some countries/states. Liability coverage won’t repair or replace your car if your car is on loan, you have to first meet up with this loan and then the choice to buy comprehensive and collision is yours alone

WHY YO NEED BOTH CAR AND HOMEOWNERS INSURANCE COVER AS UPDATED 2019 (SIMILARITIES AND DIFFERENCES

CAR AND HOMEOWNERS INSURANCE (SIMILARITIES, DIFFERENCES AND BENEFITS)

Car and Homeowners insurance in simpler form means buying two or more insurance policies and these policies have their own benefits. A policy holder may want to opt in for both of these policies to take advantage. There are similarities and difference between car (property) insurance policies and home insurance policy. Applying for both car and home insurance policy is like two insurance companies offering discount on two different products and taking advantage of them at the same time.

For example company A offers a discount on car insurance and company B also offers discount on Home Insurance, you decided to go for one before the knowledge about the discount offered but because these two companies are offering discount, then you made a decision for to buy both products, having both products kills cost and increases insurance security.
In a quick review, we shall be highlighting some of what home insurance and car insurance offers and do not offer…

 A homeowners insurance policy have certain things it does not cover for example, there are some perils that are not included in the policy because of “exclusions” written on them. Some natural disasters and there are also some natural disasters that are not covered by homeowners insurance which include:

a War:  In the case of war and terrorism, homeowners policy will not be effective.

b Termites and other Insects: This means there will not be  claim or homeowners will not seek for damages replacement if it was affected by termites or other insects.

c Mold: Unexpected or emergency accumulation of mold may be covered but when it accumulates gradually over a period of time and its not been looked into, then there will be an exclusion or limit to what will be offered.

d Pollution: Homeowners will not seek or claim any damages caused by another party. Pollution like sewage or release of pollutants, dispersal and others unless it was caused by “covered peril” then there may be a claim.

e Earthquake: This is sometimes excluded in most homeowners policies but can be added by endorsement or the policyholder takes a separate policy for it.

f  Flood: It is definitely not covered by this policy. Flood Insurance is a policy on its own (By the Flood Insurance Policy).

Also on the auto/car insurance there are gains that are covered by the policy. There is a “RISK TRANSFER STRATEGY (RTS)” which is the high liability limits and a high deductibles risk transfer strategy which are explained below:

• Liability Limits: When you counter any risk, the insurance company transfers the risk for the things that can cause financial hazards. Anyone can be sued for a cause of liability and a higher limit of liability that protects against loss is relatively inexpensive.

• Combined forces: A good and descent insurance practice and risk management is the combination of higher deductibles and high liability limits in other words, it is transferring risk for those losses you could not have afforded to pay and self insuring for those things you can.

• Higher deductibles: This provides a specific benefit to homeowners like immediate and ongoing savings and also insurance for smaller claims that can negate free discounts.

Insurance Policy is about reducing risk and also staying safe whereby and insurance company acts in your behalf based on your premium but I can assure you that if you have the below listed you can reduce your homeowners insurance rate, yea, and also enjoy having an insurance policy thus;

WHAT CAN REDUCE YOUR HOMEOWNERS INSURANCE RATE? 

1 Smoke Detectors

2 Update on electrical wiring in your home

3 Bundle your Homeowners insurance with auto insurance

4 Increase in your deductible that is; pay more of pocket in a claim but save on the premium.

5 Having  a fire extinguisher

6 Having a burglary alarm installed.

CAR INSURANCE

                As applicable to homeowners we also have in car insurance which are:

1 Sort for cheaper insurance benefits: Prices for Auto Insurance varies from companies to others depending on the type of car, background, residence (where you live), and your claim history.

2 Reduce converge for cars that are long gone or old in terms of production, validity period or passage of time.

3 Buy home and car coverage from the same company will be of great advantage for you as the insurance company will look into your needs, compare their benefits and give you the best option based on your premium.

4 Good driver, student and low mileage discounts

Learn more on  homeowners  Insurance here

TOP LIST OF INSURANCE COMPANIES IN UNITED KINGDOM, CANADA, USA, AUSTRALIA, GERMANY, NIGERIA

LIST OF TOP INSURANCE COMPANIES NEAR YOU 

This article is originally compiled to assist beginners and information seekers on the various well known insurance companies. In this article, we shall be considering six(6) countries and only the well-known (top notch) Insurance companies is be listed:

LIST OF INSURANCE COMPANIES BASED IN UNITED STATES OF AMERICA

1.     AARP

2.     ACE Limited

3.     Acuity

4.     Elephant com

5.     Affirmative Insurance

6.     Allied Insurance

7.     Allstate Insurance

8.     American Automobile Insurance

9.     American Family Insurance

10. American Income Life Insurance

11.  American National Insurance Company

12.  America Mutual Insurance

13.  Arbelle Insurance Group

14.   AXA Equitable Life Insurance Company

15.   Berkshire Hathaway

16.  Brotherhood Mutual Insurance Company

17.  Chubb Corp

18.  Care Source

19.  Country Financial

20.   Ensurance

21. Evergreen USA RRG

22.  Geico

23.  Genworth Financial

24.  FM Global

25. The Guardian Life Insurance Company of America.

26.  Guide One Insurance

27. The Hartford

28. HCE Insurance Holdings

29.   Infinity property and Casualty Corporation

30.  Iron Shore

31.   Intel Quote Insurance Services

32.  K&K Insurance

33. Kansas City Life Insurance Company

34.  Kentucky Farm Bureau

35. Liberty Mutual

36.  Lincoln National Corporation

37.  Manhattan Life Insurance Company

38. Merchants Insurance Group

39.   State Farm Insurance

40.  Nationwide Insurance

41.  USAA

42.   Standard Insurance Company

43.  Selective Insurance

44.  PEMCO

45.   Ohio National Financial Services

46.   New York Life Insurance Company

47.  National Life Insurance

48. Lemonade Insurance

49. New Jersey Manufacturers Insurance Company

50. The Regence Group

51.  And many others.

LIST OF INSURANCE COMPANIES IN UNITED KINGDOM

1.     Auwa

2.     RSA Insurance Company

3.     Direct Line Group

4.     AXA Insurance

5.     Bupa Insurance

6.     ACE Europe

7.     Allianz

8.     NFU Mutual – Financial Service

9.     XL Group

10. Ageas Insurance

11.  Liverpool Victoria

12. FM Global – Corporate Risk Management

13.   Towergate Insurance

14.  Legal and General

15.    Engage Mutual Assurance

16.  Amlin

17.  Beazley by Group – Multinational Insurer

18. Brit Insurance

19.   Churchill Insurance

20. The AA – auto Insurance and cover

21.   Saga – Insurance and Financial Services

22.  Intasure

23. AIG Europe

24.  Lloyo’s

25. UK Insurance Limited

26. Total Insurance

27.   Euler Heme UK Plc.

28.  British Reserve Insurance co. Ltd.

29.  BUPA Insurance Ltd.

30.  Great Lakes Re-insurance (UK)

31.  St. Andrews Insurance plc.

32.  QBE Insurance (Europe) Ltd.

33. Prudential Plc.

34. Standard Life

35.  Old Mutual Wealth (UK)

36.  Phoenix Group Holdings

37.  Aegon UK

38.   Apple Scott Insurance

39.   Prudential Plc.

40.   Esure Insurance Ltd.

LIST OF INSURANCE COMPANY IN GERMANY

1.     Allianz

2.     ARAG SE

3.     Combined Insurance

4.     Deutsche Afrika – Linen/John T. Essberge Group of companies

5.     ERGO Group

6.     General Deutschland

7.     Gothaer Group

8.     Hamburger Feuerkasse

9.     Hamover Re

10.  Munieh Re

11.  G. & J. E. Pineernelle

12.  Signal Iduna

13.  Talanx

14.    VHV Group

15.  Wustemot&Wurttembergische

16.  Lloyd’s Germany

17.   Nieder& Co.

18.  Gothaer Group

19.   AXA Leben

20.   DKV

21. Zurich Vers. AG.

22.    LVM Sach Insurance

LIST OF INSURANCE COMPANIES IN CANADA

1.     All State Insurance Company of Canada

2.     Assumption Life

3.     Aviva Canada

4.     Blue Cross

5.     CAA Health and Dental Insurance

6.     The Co-operators

7.     Desjardins Group

8.     Economical Insurance

9.     Equitable Life of Canada

10.  Empire Life

11.  Federated Insurance Company of Canada

12.   Gore Mutual Insurance Company

13.  GMS Insurance

14.  Great American Insurance Company

15.  Greenshield Canada

16.The Great – West Life Assurance Company

17. Independent Order of Foresters

18.    Industrial Alliance

19.  Insurance Corporation of British Columbia

20.  Intact Insurance Company of Canada

21.  Knights of Columbus

22.  Primerica

23.  Standard Life

24. Sum Life Financial

25.  The Personal Group Insurance Company

26.  Wawanesa Insurance

27.   Union of Canada Life Insurance

28. Transameria Life Insurance

29.  La Capital Life Insurance

30. Assumption Life

31.Scotia Life

32.  Canada Protection Plan

33. Bingham Group Services Corp

34.  IA Excellence Life Insurance Company

35.  Hamania Assurance Inclined (Formerly LS Mutual)

36.  BMO Life Assurance Company (Formerly AIG Life Insurance)

LIST OF INSURANCE COMPANIES IN AUSTRALIA

1.      AAMI                                             Allianz

2.       Amp Limited                                 Asteron

3.       Associated Mannie                        Arant

4.     AXA                                               Aussie

5.     Bingle                                             Bank of Queensland

6.     Budget Direct

7.     CGU Insurance             

8.     Colonial Mutual

9.     Colonial Mutual Chambers

10.  Combined Insurance

11.   Cover-More

12.   Gio General                                                Guardian

13.     GMHBA Limited

14.   HBF Health Fund         

15.  HCF Health Insurance

16.    Health Insurance Fund

17.  HIH Insurance Australia Group                  Insurance Line Life

18.  Manufacturers Mutual Insurance                Met Life

19.  Manufacturers Mutual Insurance                

20.   Nib Health Funds                                        Noble Oak

21.   Progressive corporation

22.   Promina Group

23.  QBE Insurance

24.   Real Insurance

25.    Royal automobile Association

26.    SGK

27.    SGIO (Western Australia)

28.   Sincorp Group

29.   T and G (T & G) Mutual Life Assurance Society

30.   Vero Insurance

LIST OF INSURANCE COMPANIES IN NIGERIA

1.     Consolidated Halmark Insurance Plc.

2.     FBN Insurance

3.     Great Nigeria Insurance Plc.

4.     Guinea Insurance Plc.

5.     Industrial & General Insurance Plc.

6.     Law Union an Rock Insurance Plc.\

7.     Mutual Benefits Assurance Plc.

8.     NICON Insurance Plc.

9.     Niger Insurance Plc.

10.    Nigeria Deposit Insurance Corporation

11.     Nigerian Insurers Association

12.    Regency Alliance Insurance Plc.

13.   Sovereign Trust Insurance Plc.

14.  Sterling Assurance Nigeria Ltd

15.   WAPIC Insurance Plc.

16.   A&G Insurance

17.   Continental Reinsurance

18.   Cornerstone Insurance Plc.

19.    Crusader Insurance Plc.

20.   Custodian Insurance Plc.

21.    Equity Life Insurance Co. Ltd.

22.    Goldlink Insurance Co. Ltd.

23.  Guaranty Trust Assurance Plc.

24.   Industrial and General Insurance Plc. (IGI)

25.     International Energy Insurance Plc.

26.    LASACO Assurance Plc.

27.    Leadway Assurance Company Limited

28.   Linkage Assurance Plc.

29.   NEM Insurance Plc.

30.  Nigeria Deposit Insurance Corporation (NDIC)

31.   Oasis Insurance Plc.

32.   Oceanic Insurance Limited

33.    Royal Exchange Assurance (Nigeria) Plc.

34.   TransGlobal Insurance Brokers

35.   Zenith Assurance Company

36.   Staco Insurance Plc.