Does renters insurance cover water damage?

Renters insurance covers water damage from events like burst pipes, accidental overflows, and leaks from appliances. However, it does not cover flood damage from natural disasters or sewer backups unless you purchase additional flood insurance. Always review your policy’s water damage exclusions.

What happens if a reinsurer fails?

If a reinsurer fails, the primary insurer is responsible for all claims. To reduce this risk, insurers work with highly rated reinsurers and may use retrocession (where a reinsurer transfers some of its risks to another reinsurer).

How does comprehensive coverage work in case of theft?

If your vehicle or property is stolen, comprehensive coverage reimburses you for the actual cash value (ACV) minus the deductible, based on your policy terms.

Can parametric insurance be used for climate change adaptation?

Absolutely. Parametric insurance is increasingly used as a tool for climate resilience, providing financial support for extreme weather events such as droughts, heatwaves, and floods. It helps businesses, farmers, and governments cope with climate uncertainty by ensuring rapid financial recovery from adverse environmental conditions.

Can a beneficiary be challenged in a life insurance claim?

Yes, a beneficiary designation can be challenged in court if there’s evidence of fraud, coercion, or if the named beneficiary is no longer eligible (e.g., divorce).

What is not covered under business property insurance?

It typically excludes employee theft, wear and tear, cyber risks, floods, earthquakes, and losses due to business interruptions.

Can Universal Life Insurance be used for estate planning?

Yes, UL is commonly used in estate planning to provide liquidity for estate taxes, protect assets, and ensure a tax-free inheritance. Trusts can be used alongside UL policies to maximize benefits and ensure wealth is transferred efficiently.

What is an example of a hidden hazard in a home?

A hidden hazard could be asbestos in building materials, which poses long-term health risks, or outdated electrical wiring that increases the risk of fire without being immediately visible.