Insurance is known as the perfect safety net when things go wrong. Everyone should own some personal insurance(s) to avoid personal risks. These risks can include home, assets, health/life, travel risks, etc. Different insurances cover each one of these risks in the best way.
Although there are always mistakes and misunderstandings when it comes to buying insurance. Buying the right insurance is crucial and should include the best cover. Many people question, ‘what could go wrong?’, but the question should be “what insurance can I buy, just in case?”
This article will explain the top 5 personal insurance tips when buying insurance.
Personal Insurance Tips & Personal Risks Covers
1. If It Has Value to You – Insure It
The number one tip to everyone thinking about purchasing insurance is to insure everything that means something to you. This could be your home, travelling baggage, and assets. Some assets have significant financial or emotional values.
These assets could also include anything from a watch, jewellery, or any other valuable collections. These belongings are worth an immense amount and would cause devastation if damaged or lost. Asset insurance is a personal insurance for these situations; the insurance will cover if your insured asset is stolen, lost or damaged. Therefore, you should insure your valuable assets as soon as possible – you won’t regret it.
2. Review Your Policy – Make Sure It Is Customised to Your Needs
Purchasing a personal insurance can be confusing and overwhelming. In addition, each policy provides unique covers that may fit your need or may not. Therefore, it is crucial to communicate with insurers what cover is essential to you. Then, insurers can customise the right insurance for your needs or your personal risks.
Additionally, you should not purchase a minimum coverage insurance policy just because it is cheap. The right personal insurance is worth the cost and, most of the time, not expensive as people imagine. Therefore, you should compare different packages to understand which policy best fits you at a reasonable price.
Furthermore, if it all feels complicated, you should contact an insurance intermediate like Red Asia Insurance. We will do the hard work for you and find the best insurance for your needs.
3. You Don’t Need to Own Your Home to Insure It
Buying a house in a city like Hong Kong can be crazy expensive; that’s why most of us rent our homes. However, a common mistake tenants make is not purchasing home insurance- because they believe the landlord’s home insurance will cover them. This is very wrong; the landlord’s home insurance will only cover the landlord’s property, not your belongings.
Even if you rent your home, you need to purchase your own home insurance policy. This personal insurance is crucial to protect your belongings and liability from home risks. For example, if your home is broken into or bad weather damages your valuable belongings. Own your home insurance to avoid possible home personal risks.
4. Inform Your Family About Personal Insurance and Personal Risks
You should share your insurance policies with family and loved ones. Just in case something happens to you, or you aren’t there when things go wrong. Then, when your family is informed about the insurance, they know they are covered and can file a claim during an emergency.
The primary insurance the family should know about is life insurance, yours and theirs. Everyone should have a copy of the family’s life insurance. The knowledge of the insurance can help them get the cover when something happens to you or when something happens to them, and you are not in the country.
5. Things Can Go Wrong at Any Point – Be Prepared
Finally, this world is unpredictable, and insurance is there for you when things don’t go as planned. Any personal risk could occur at any point in your and your loved one’s life. It is great if you haven’t faced any personal risks yet, but sadly at some point, you will.
When faced with personal risks and tough times- insurance will financially allow you to recover from it. Therefore, it is vital to purchase the right insurance and be prepared for those challenging situations. Additionally, it is wise to have multiple personal insurance policies that cover different personal risks. The worst time to realise you could have been covered is when you spend too much to move past the situation.
Don’t regret it in the future; follow these tips and insure now.