cox and johnson insurance

Insurance policies work by taking premiums from customers in exchange for Baring the risk of certain costly events occurring. For example, if there is one fire in your town each month, everyone could just sit tight and hope their house does not burn down next, or everyone could pitch in and pay for insurance premium each month and this is then used to rebuild the house that burns down. Very simply this is how insurance works. It is a method of spreading risk over a far resist area, so that it will not be as Devastating as if it was concentrated solely on the person who experiences the loss.

Exclusion clauses

There are a few problems with this however, and they attract much criticism. One criticism is that the assumption of the risk to humans, makes insurance take greater risks than they otherwise would. For example, if you know that your home contents are protected against burglary, then you can not so carefully lock the doors and windows every time you leave the house. Or, if your bike is insured, you can not bother to lock it as much as if they are not insured. In the insurance industry, this problem is known as the "moral hazard".

Insurance to protect themselves against this by using exclusion clauses in their contracts with their obligation to pay if the insured or not, certain measures. You could, for example, require that you fit smoke detectors, or use good locks on your doors or other things that the risk of the insured against event.

Too Complex

There is also some risk that you are not allowed to fight in most countries. This is mainly because it would be too difficult for insurers to quantify, but it is mainly because she is a danger that governments want the person in danger of becoming mere itself you usually have for Multinational Enterprises .

There is also criticism that the insurance companies are much too complex for the vast majority of consumers to understand. It is simply unrealistic to expect customers to understand long documents were not, but usually teams of specialized lawyers. This can lead to mislead consumers or to purchase insurance to adverse conditions. To get around this, most countries regulate the content of insurance contracts to ensure that they remain fair to consumers.

There is also the possibility of using the services of an insurance broker on the market, shop for you.

Joseph Kenny is the webmaster of the insurance http://www.insure121.com/ site where you will find information, news and links to the leading providers of home insurance in the UK.