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SEEKONK, MASSACHUSETTS, United States

Monday, April 3, 2017

WORTHWHILE OR WORTHLESS- A CONSUMER GUIDE TO AVOIDING SCAMS AND SCOUNDRELS. INSURANCE- ONE OF LIFES UNGLAMOROUS NECESSITIES. PT 4.


House, Destruction, Home, Building, Structure

There are Certain Types of Insurance that can be Acquired or Purchased, that many People Fail to Adequately Understand, in Reference to what is Covered or Not Covered, How Premium Rates are Calculated, and The When and Why Benefits are Paid Out.

The following are examples that I believe are MOST COMMON.

LIABILITY INSURANCE-  IN ANY FORM, HAS ONE MAIN PURPOSE: TO PROTECT THE ECONOMIC WELL- BEING OF THE INSURED FROM CATASTROPHIC CONSEQUENCES, RESULTING FROM SUBSTANTIAL MONETARY AWARDS FROM CIVIL LAWSUITS BROUGHT AGAINST THEM. 

THESE ARE "DAMAGES" AWARDED TO PLAINTIFFS WHO HAVE PREVAILED IN CIVIL COURT FROM LAWSUITS ALLEGING NEGLIGENCE OR LACK OF REASONABLE CARE AGAINST THE INSURED, OR ANY AGENTS ACTING ON THEIR BEHALF.

In Other Words, YOU ARE RESPONSIBLE FOR YOUR ACTIONS, BOTH CRIMINALLY AND CIVILLY.  LIABILITY INSURANCE IS PROTECTION AGAINST FINANCIAL JUDGMENTS AWARDED TO OTHER PARTIES WHOM YOU HAVE HARMED. 

Of Course there are POLICY PAYOUT LIMITS, DEPENDING ON HOW MUCH YOU FEEL IS NEEDED.  This will Naturally Affect Cost, Reflected through your Premium Payments.  However, Keep this in Mind;  JUST BECAUSE YOU HAVE LIABILITY INSURANCE, DOES NOT MEAN THAT THERE WILL BE ENOUGH TO PAY ANY AND ALL JUDGMENTS AGAINST YOU.  ANYTHING BEYOND THE POLICY LIMITS, YOU ARE RESPONSIBLE FOR. 

In the U.S., The Concept of Awarding Monetary Damages to Victims, through JUDICIAL DECISIONS, OPERATES UNDER THE:

"TO MAKE THE VICTIM WHOLE" MAXIM.  

This is Meant to Compensate the Victim for;

ANY NEGATIVE FINANCIAL CONSEQUENCES THAT ARE CAUSED BY THE NEGLIGENT ACTS OF ANOTHER.

OR 

TO RETURN THEM TO AN ECONOMIC STATE THAT EXISTED BEFORE THE ACT OR ACTIONS THAT BROUGHT THE MATTER BEFORE THE COURT.

LOOK FOR PART 5.