What is Insurance and Why Do We Need It in New Jersey?

Insurance is the payment of a small, predictable amount of money (“premium”) to protect you against a large unexpected expense (“loss/damage”). It transfers the risk from you to the insurance company for a fee. This protection is carried out in several ways. You can contact http://www.clearskiestitle.com for a New Jersey title insurance company.

What Is Title Insurance In A Real Estate - 2022 Guide - Times Lifestyle

Liability insurance is the protection that the insurance company gives you and tells you that they will pay the amount you are legally required to pay. Sometimes this can mean a lawsuit, but more often than not the insurance company will “decide” the matter for you.

Imagine your guest tripping and falling on the ice in your hallway accusing you of not throwing sand or salt. Your insurance company is responsible for paying your medical bills, lost wages, and possibly the pain and suffering caused by the accident.

Title insurance coverage is more tangible than a liability. Title insurance protects property from damage or loss of use. Most policies include and exclude certain types of events called “threats”.

You can think of this type of insurance as professional liability insurance. Doctors, lawyers, and engineers should have this kind of insurance in case they make wrong decisions or give bad advice.

Why do we need insurance?
Many of us never have to claim our insurance. Therefore, when we write checks month after month, we feel like we are wasting money. While you never sue your insurance company, there are good reasons for that. Of course, there is insurance to protect you and your investment, but face it; Many of us will not buy insurance unless required by law or by a bank.