Sunday, November 4, 2012

Homeowners Insurance Murphy TX Persons Take Follow Certain Principles

By Tameka Ware

Succeeding in business requires all its stakeholders to act fairly in all their dealings. This should be enforced by having a law which spells out the terms of doing allowable transactions otherwise those who act contrary to such rules risk losing financially or other legal action. Since everyone who owns assets may want to minimize the impacts of different risks occurring by paying an insurer some stated premiums in exchange for compensation if a specific uncertain event occurs causing damage. This industry is however highly regulated with the players in this field enforcing the specific principles to prevent fraudulent dealings by different clients. The Homeowners insurance Murphy TX real estate investors take is therefore aimed at protecting them against financial losses when certain risks occur.

Insurers only pay for losses associated with risks which have been insured against. For instance, if a person has insured against fire, the insurer can only compensate for losses associated with occurrence of fire. It is therefore important to take cover against different risks to ensure as many risks as possible have been covered.

The owner of a home is the only one who the insurer can recognize as having the capacity to sign policy documents. This is often verified to determine the rightful owner of a property that is being insured. The person who has insurable interest should stand to lose financially in case of occurrence of a loss which does not include friends or relatives.

Applicants to all insurance covers are required to disclose any material information that can influence the occurrence of a certain risk. Applicants should therefore not withhold information or disclose false information otherwise the contract would be declared null and void since it has been entered into by presenting false information. Compensation for any associated risks is denied.

When an insurer accepts to compensate the insured person through purchase of new appliances, the ownership to such appliances automatically transfers to the insurer. The insured party is supposed to be restored to the financial position they were in before occurrence of an insured risk. Therefore they should not benefit in the process of compensation.

The policy holder can only take a cover for a sum less or equal to the value of the property. Therefore, people do not have the liberty to contribute premiums to different companies to cover the same risk. This is meant to prevent double compensation from different insurers which in turn makes the owner earn a profit upon compensation.

The risk against which any loss is insured should be uncertain for any cover to be effective. It should be impossible to guess when and whether a certain risk will occur for any application to qualify to be insured. This means the insured person cannot contribute to the occurrence of the loss and still claim compensation.

Premiums are the price that an insured person can take towards the cover. The amount contributed towards homeowners insurance Murphy TX residents commonly take is determined by actuarial scientists in such firms. It is should always be paid prior to the commencement of the policy or after expiry of a policy to renew it for the next period.

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