A contract that is typically designed as a means of protection to any unpredictable or uncertain financial loss of the policy holder is called as insurance. Insurance is being given or offered by the insurance company, insurer, or insurance carrier to an individual or entity, called as the insured or policyholder. There are a lot of different methods of insurance, namely the dual insurance, which is designed for the situations wherein the risks have two or more policies with the same scope or coverage; the self-insurance, which is designed for situations where risk is not being transferred to the insurance carrier, instead it is being retained solely by the individuals or entities themselves; the reinsurance, which is designed for situations when the insurance carrier passes the risks to another insurance carrier known as the reinsurer; and the co-insurance, which is designed for situations wherein the risks are being shared between the insurers. The most common types of insurance products that are being offered by insurance companies are income protection insurance, liability insurance, property insurance, burial insurance, casualty insurance, life insurance, auto insurance, gap insurance, and health insurance.
The two most popular types of insurance are the auto insurance and the property insurance. The auto insurance can also be called in various ways, such as motor insurance, vehicle insurance and car insurance, and this type of product is designed specifically for motor vehicles, such as trucks, cars, and motorcycles. The primary aim of the auto insurance is to provide or offer financial protection to the insured from any occurrences like car accidents or traffic collisions that may lead to death, physical damages and injuries to the body. Some other uses and purposes of the auto insurance is that it can provide financial protection to the insured against theft, and damages to the vehicle due to colliding with stationary objects and keying.
The type of insurance that is being designed to provide the policyholder with protection that they need from the risks to their property, such as tornadoes, earthquake, theft, fire, and any other weather damages, is called as property insurance. There are absolutely a lot of various forms of property insurance, namely the fire insurance, the flood insurance, the home insurance, the earthquake insurance, and the boiler insurance. HOI is the abbreviated term for home insurance, and that is because this specific form of property insurance can also be called as homeowner’s insurance, and it is typically designed and made to cover a privately-owned residential building. The home insurance is typically used to cover any loses or damages to the residential house of the policy holder or insured, as well as the assets within their residential property.