Last Updated on April 15, 2021
There are many misconceptions and misleading information about Insurance, focusing only on one side of the industry. The focus should be on the importance of Insurance, its core purpose, history, and many other aspects. This is the result of the circulation of many unverified facts that usually come from the media or other people. There are many insurance facts that you never heard of, which important when thinking of getting insured. If you don’t know enough about Insurance or looking for facts about this latter, you are in the right place. Here are five interesting insurance facts you probably didn’t know about!
1.Insurance Is Older Than You Think
one of the most interesting Insurance facts is that it’s older than most people would think! Insurance dates back to 3000 B.C in China. Insurance started with merchants fearing that their merchandise would be lost when transported via ships. These merchants got together and came up with the idea that they will distribute their merchandise equally on different ships. That move will be game-changing if a shipwreck happens because that way it will affect them all slightly. And just like that, nobody will be affected by a big loss. This seems quite ancient, but it is, after all, the way insurance companies still operate today.
2. Some Home Insurance Policies Ban Specific Dog Breeds
This insurance fact may seem surprising, but many insurance companies worldwide do this. These insurance companies place a lot of restrictions around home insurance policies for some dog breeds owners.
Every year over 4 million people get bitten by dogs. While a significant percentage of these dog bites call for immediate medical attention. This affects insurance companies by up to 700 $ million in liability claims, only in relation to dog bites. This was stated by the Insurance Information Institute and State Farm. For this reason, many Home insurance policies started to place restrictions around some dog breeds, such as pit bulls, Akitas, and rottweilers.
3. It Is Very Likely That Your Home Insurance Covers Natural Disasters
A very important Insurance fact to note is that many home insurance policies cover meteor and volcano damages. You might think if insurance policies don’t cover flood damage, they probably won’t cover damage caused by a natural disaster. Well, that is incorrect, and most home insurances cover things like construction damage. It is also important to note that earthquakes are usually excluded and usually aren’t covered by your home insurance. That is why it’s always important to speak to your agent about the details. You must check every aspect of your home insurance policies, so you can add what you think is lacking. And of course it always good to be aware of your limitations.