In the event of a loss, insurance pays out an agreed amount or an amount to cover the damage. The cost of insurance (known as a premium) for insurance is calculated on a number of factors, the main ones are: the type of risk you want to insure against, the information you give to the insurance company and the amount of excess you specify (excess allows you to lower the cost of you policy by paying an agreed contribution to the value of that claim).
You must provide the correct information or any claim you make could be invalidated.
Your premium will usually be paid either annually (single/regular premium) or monthly (a regular premium). When choosing your insurance policy you can use an insurance broker to provide advice, or handle the process yourself.
Most types of insurance last for a one-year period – you should shop around to make sure you are getting the right cover at the best price.
There are many types of insurance so it is important to consider what type of insurance you need before you decide to buy any.
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