general insurance covers the physical properties and very unlike life insurance asks for the asset value so that the amount of claim can be determined.

Insurance

Insurance is a contract between two parties where one ensures other a financial support in case of happening of certain events. The one offering insurance is insurer, generally an insurance company and the other party is the ensured one, normally a customer. There are two types of insurance basically, life insurance and general insurance. Most of us are aware of life insurance, but what is general insurance? It is the other category of insurance that includes everything other than life insurance.

General Insurance Coverage

One must be wondering what the items that general insurance policies cover is; it is all about assts and properties. Anything and everything you want to get protected from future damage, general insurance is what should be availed. It is an insurance that if anything unfortunate happens to your asset, insurance company will pay you off. Some of the more common types of assets falling under this category are:

• Vehicles
• House Buildings
• Ships
• Expensive ornaments

You must have realized that most of these items are expensive. Being expensive is the sole reason you want it to be protected from burglary or fire. Though these are not the only situation where you can almost lose or get it damaged.

General Insurance Vs Life Insurance

There is one very basic difference between the two that almost changes the nature of the agreement. In a life insurance policy, a person is protected against certain kind of risk and it is his life which is protected under the cover. While that certainly is not the case with a general insurance policy. It will cover the assets and properties such as cars, motor bike, ships, house building etc. So unlike life insurance, there is no covering for life loss but for the loss or damage done to a property.

Just like life insurance it is equally important since life has gone so fast that one never knows what is going to happen the next moment. Having an insurance policy keeps you content that there will be a financial support if an unfortunate event occur and your property is in danger or is already damaged or lost.

Common Mistake

One of the very common mistakes that people in general commit while choosing a general insurance policy is not going for the whole value. For an example if a car cost those 6, 00,000, then they will only go for half the price. This is all just to save a few dollars in the form of premium. See, it is true that amount of premium is determined through the value of asset you have covered with the insurance. But what they forget to notice is, claimed amount will also be partial and not full as per your policy terms.

A type of insurance that covers properties and assets for a certain time period is considered as general insurance. It is something everyone should avail for their valuable items.