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When shopping for the appropriate insurance plan for your assets, you need to consider whether the cover opted for will cater to your needs sufficiently. Some of the things you need to consider include claims on damaged or lost assets, how fast compensation claims process, and much more. Most people are ignorant of other insurance products besides the usual business cover plans. For instance, many people are unaware of the personal assets insurance cover, which caters to claims on individual assets.
Getting it right when selecting an insurance plan may initially feel frustrating, particularly understanding all the intricacies of asset insurance. However, this factor should not hinder you from exploring other options, as you’ll only need to consider the following factors:
- Asset classification
- Claim settlement history
- Risk attached to an asset vs. proposed solution
- Terms of the insurance policy
Factors to Consider When Selecting an Asset Insurance Plan
1. Asset Classification
An asset is defined as anything that has value & economic resources, future benefits, can generate future cash flows, or can easily be converted into liquid cash. Insurers categorize business assets, whether tangible or intangible, as either fixed or current assets. Common business assets include cash, property, plant & equipment, machinery, and office furniture. On the other hand, a personal asset is any valuable thing owned by an individual or a household. Common individual or personal asset examples include land, buildings, motor vehicles, jewelry, household goods, investments & financial instruments, and cash in an asset insurance plan.
2. Claim Settlement History
Experts advise people looking for insurance plans to consider the claim settlement ratio of the insurance company in question. Fortunately, the insurance sector remains well regulated, with a settlement ratio of 80%. Therefore, the likelihood that a legitimate claim won’t be settled is low. Additionally, most insurers have a healthy settlement ratio.
3. Risk Attached to an Asset vs. Proposed Solution
The chance that a claim on an asset will arise differs for different assets. This aspect calculates the risk level of an asset. For instance, insurers consider expensive jewelry a high-risk asset compared to other personal assets, such as furniture or cutlery. When shopping for the appropriate insurance plan, make sure the recommended or selected solution matches the risk attached to your asset.
4. Policy Terms and Conditions
Once you identify the product that matches your needs, take time to familiarize yourself with the policy features and get clarification for ambiguous or unclear sections of the policy document. Key features for evaluation should be premiums, policy terms, extra charges or fees, and maturity period.
Learn More About Creating an Asset Insurance Plan
A dependable insurer is all you need to cushion you against future calamities attached to your assets. At IMA Financial Group, our primary goal is to ensure that the property and assets of our clients are secured against future and current potential risks.
Our insurance plans, both for business and individual assets, are pocket-friendly and customizable for all asset insurance needs. Contact us today to discover a wide range of products that are perfect and sufficient for you.
Have questions? Want to know more?
Reach out! At IMA, we’re here to help safeguard your future!