Why do insurance companies buy reinsurance?

Insurance companies purchase reinsurance to protect themselves from large losses, increase their risk-taking capacity, improve financial stability, and comply with regulatory capital requirements. Reinsurance helps insurers handle claims from major disasters or high-value policies.

How does cyber insurance help in ransomware attack recovery?

It provides financial assistance for ransom payments, forensic investigations, IT recovery, business interruption losses, legal fees, and regulatory fines after a ransomware attack.

What is a flood zone, and how do I find mine?

A flood zone is a designated area that FEMA assigns based on flood risk levels. Zones range from high-risk (A and V zones) to low-risk (B, C, and X zones). You can find your home’s flood zone using FEMA’s Flood Map Service Center or by asking your insurance agent.

How does the reimbursement process work in insurance?

When a covered event occurs, the policyholder submits a claim to the insurer, providing documentation of the loss or expense. The insurer reviews the claim and reimburses the policyholder based on the terms of the policy.

How does depreciation impact a claim settlement?

Depreciation reduces the payout amount by accounting for wear and tear, which means the final settlement may be lower than the item's replacement cost.

Can UBI help me save money on car insurance?

Yes, UBI can lower premiums for safe drivers. Those who drive less, avoid harsh braking, and maintain safe speeds often receive discounts. However, risky driving behaviors may increase costs. It's important to compare traditional and UBI plans to determine which option provides the best savings for your driving habits.

What is coinsurance in health insurance?

Coinsurance is the percentage of costs you pay for covered healthcare services after meeting your deductible. For example, if your plan has 20% coinsurance, you pay 20% while insurance covers 80%.

Can my landlord require me to get renters insurance?

Yes, landlords can require renters insurance to protect their property and ensure tenants have liability coverage for potential damages.