Insurance, being an integral part of the financial sector, plays a significant role in India’s economy. Apart from protection against mortality, property and casualty risks and providing a safety net for individuals and enterprises in urban and rural areas, this sector encourages savings and provides long-term funds for infrastructure development and other long gestation projects of the country. The development of the insurance sector is necessary to support its continued economic transformation.

Types of Insurance

There are many different types of insurance. Let’s look at the most important.

Health Insurance

Health insurance helps covers routine and emergency medical care costs, often with the option to add vision and dental services separately. In addition to an annual deductible, you may also pay copays and coinsurance, which are your fixed payments or percentage of a covered medical benefit after meeting the deductible. However, many preventive services may be covered for free before these are met.

Health insurance may be purchased from an insurance company, an insurance agent, the federal Health Insurance Marketplace, provided by an employer, or federal Medicare and Medicaid coverage.

The federal government no longer requires Americans to have health insurance, but in some states, such as California, you may pay a tax penalty if you don’t have insurance.6

The insurance sector is made up of companies that offer risk management in the form of insurance contracts. The basic concept of insurance is that one party, the insurer, will guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the policyholder, pays a smaller premium to the insurer in exchange for that protection on that uncertain future occurrence.

As an industry, insurance is regarded as a slow-growing, safe sector for investors. This perception is not as strong as it was in the 1970s and 1980s, but it is still generally true when compared to other financial sectors.

Home Insurance

Homeowners insurance (also known as home insurance) protects your home, other property structures, and personal possessions against natural disasters, unexpected damage, theft, and vandalism. Homeowner insurance won’t cover floods or earthquakes, which you’ll have to protect against separately. Policy providers usually offer riders to increase coverage for specific properties or events and provisions that can help reduce deductible amounts. These adders will come at an additional premium amount.

Renter’s insurance is another type of homeowners insurance.

Your lender or landlord will likely require you to have homeowners insurance coverage. Where homes are concerned, you don’t have coverage or stop paying your insurance bill your mortgage lender is allowed to buy homeowners insurance for you and charge you for it.7

Auto Insurance

Auto insurance can help pay claims if you injure or damage someone else’s property in a car accident, help pay for accident-related repairs on your vehicle, or repair or replace your vehicle if stolen, vandalized, or damaged by a natural disaster.

Instead of paying out of pocket for auto accidents and damage, people pay annual premiums to an auto insurance company. The company then pays all or most of the covered costs associated with an auto accident or other vehicle damage.

If you have a leased vehicle or borrowed money to buy a car, your lender or leasing dealership will likely require you to carry auto insurance. As with homeowners insurance, the lender may purchase insurance for you if necessary.8

Life Insurance

A life insurance policy guarantees that the insurer pays a sum of money to your beneficiaries (such as a spouse or children) if you die. In exchange, you pay premiums during your lifetime.

There are two main types of life insurance. Term life insurance covers you for a specific period, such as 10 to 20 years. If you die during that period, your beneficiaries receive a payment. Permanent life insurance covers your whole life as long as you continue paying the premiums.9

Travel Insurance

Travel insurance covers the costs and losses associated with traveling, including trip cancellations or delays, coverage for emergency health care, injuries and evacuations, damaged baggage, rental cars, and rental homes.10 However, even some of the best travel insurance companies do not cover cancellations or delays due to weather, terrorism, or a pandemic. They also don’t often cover injuries from extreme sports or high-adventure activities.

 

Insurance Law

 

Insurance is a type of risk management where risk of a loss is transferred from one party to another, through payment of a premium. Reinsurance involves insuring the insurer – usually where large amounts of money are at stake – passing on the risk again.Companies use insurance for their larger commercial activity, such as investment management, and merger and acquisitions.Insurance Law can be split into many sub-specialisms. Insurance lawyers mainly deal with insurance against the destruction of assets, and insurance against mistakes made by professionals. Insurance cases vary and can range from small local cases to massive international disputes.Reinsurance law in the UK is regulated the same way as primary insurance.

The English law on insurance contracts generally applies to reinsurance contracts. The Insurance Act 2015 applies to non-consumer insurance and reinsurance contracts.Insurance covers a variety of risks, which means that it includes issues from different law sectors such as employment, shipping, property, construction and professional services. Insurance policies are contracts, including a body of insurance statutes, regulatory rules and case law.

What does an insurance lawyer do?

To a large extent, this will depend on the type of firm you are at and the type of clients you have. For example, you may be acting for individuals who are bringing claims against their insurance companies for rejecting claims on their policies.

At the big business end of insurance law, large firms usually act on behalf of the insurance or reinsurance companies on a wide range of activities, from advising companies on claims being made against them, to the transfer of business between insurers as a result of a merger or acquisition.

Insurance lawyers review claims being made on behalf of, or against, their client and advise their client on the likely strength of the case. If things turn contentious, claims can be pursued either by arbitration or in the courts.

What We Do

Our team is composed of specialists with legal industry experience, and expertise designing and implementing insurance coverage, including professional indemnity, for law firms. Whatever your firm practices, and however large or small it is, we can help you meet your risk management challenges. We provide the highest possible standard of service and maintain quality at every point of contact. We excel in identifying and helping your firm understand the specific risks of your practice, while working together toward a shared goal of mitigating exposure in a dynamic and adaptable manner.

Law firms around the world share some common risks, including professional indemnity, human resource challenges, cybersecurity, and property risk.

Across these enterprise risks, our key services include:

Advisory

We discuss your risks and the best insurance solutions to protect your firm, including key objectives and desired outcomes. We agree the insurer selection criteria to drive negotiations.

Data and Analytics

Our vast pool of global data on law firms (including claims) enables us to use an analytical approach to negotiating terms.

Negotiation and Placement

We negotiate directly with a wide range of insurers who underwrite solicitor’s professional indemnity insurance, and other covers, ensuring we are in a strong position to achieve your goals.

Day-to-Day Servicing

All our clients have a dedicated client team to provide support with day-to-day requirements and provide a full consultative service throughout the year.

Risk Management

We provide updates on topical issues. If there is an area of concern, we can work with you to deliver targeted training, selecting topics based upon our knowledge of the profession along with your firm’s requirements.

Claims Advocacy and Management

Our claims advocacy and management team consists of qualified lawyers and technical claims experts who provide advice and support regarding overall claims strategy and individual claims management

 

Areas of focus

For policyholders

• Acting for policyholders on disputes with insurers over insurance coverage.
• Advising policyholders on making notifications and presenting claims to insurers.
• Assisting on the drafting of insurance policies including transactional risks insurance such as Warranty & Indemnity insurance.
• Reviewing and advising on policy wordings.
• Representing policyholders in the pursuit and defense of disputes covered by insurance.
• Advising on insurance as security for third parties.

 

For insurers

• Drafting policy wordings.
• Reviewing policy documentation and promotional materials for regulatory compliance.
• Advising on the development and distribution of insurance products and services.
• Advising on authorisation of firms and approved persons, appointed representatives and passporting.
• Advising on the sale and purchase of insurance businesses, joint ventures and outsourcing.
• Negotiating buy-ins, buy-outs and longevity swaps.
• Advising on mis-selling complaints.
• Assisting with regulatory investigations and enforcement action, including by the Financial Conduct Authority (FCA).
• Representing insurers in subrogated claims.
• Representing brokers in claims, including professional negligence and breach of restrictive covenants.

 

When Does Home Insurance Cover Foundation Damage?

A homeowners insurance policy typically covers foundation damage that is considered “sudden and accidental” (or “sudden and unexpected”) and is the result of a covered peril. These perils may include:

• Damage from falling trees or other objects
• Fire or explosions
• Severe weather like hailstorms, tornados, or windstorms
• Lightning
• Vandalism or rioting
• A vehicle or airplane crashing into the home

In a situation where a vehicle crashes into your home, the negligent driver’s auto insurance policy should cover the damage under their property damage liability coverage. If they do not have insurance or sufficient coverage to pay for the damage, you can use your home insurance policy to pay for it. You will be responsible for your deductible.

Reach out to your agent or insurance company to see what perils are covered under your home insurance.

When Does Home Insurance Not Cover Foundation Damage?

Not all events are covered by home insurance, even if they are not your fault. Instances when home insurance does not cover foundation damage include:

• Normal wear and tear
• Lack of maintenance
• Neglect
• Earthquakes or other earth movements like sinkholes or landslides
• Flood
• Tree root damage
• Poor construction
• Issues arising from poor drainage or sudden temperature changes
• Termite or vermin damage

Depending on the state you live in and the company that insures your property, you may have the option to purchase an endorsement or separate policy for earthquake or flood coverage, which has to be in effect prior to the damage occurring. Some carriers also offer coverage for landslides or sinkholes. Separate deductibles may apply.

Does Home Insurance Cover Foundation Cracks Or Settling?

Home insurance does not usually cover foundation cracks or settling, which are considered normal wear and tear and part of regular home maintenance.

Does Home Insurance Cover Foundation Movement Or Sagging Floors?

Foundation movement or sagging floors generally are not covered by home insurance. Movement resulting from natural events like earthquakes, landslides, or sinkholes may be covered by a separate endorsement or policy, but foundation or flooring issues related to soil levels fall under the category of maintenance. However, if sagging or uneven floors are caused by a covered peril, like a burst pipe, then there may be coverage, depending on your specific insurance company and policy.

How Do You File A Claim For Foundation Damage?

If you think your foundation damage will be covered by your homeowners insurance, then it may be time to file a claim. The process may differ slightly between carriers (and claim type), but in general, you’ll follow these steps:

1. If you believe the foundation damage was caused by theft or vandalism, you should first file a police report to document the occurrence and damage to your home. Record the police report number to provide to the claims department.
2. Document the damage through photos or video.Make a list of all damages that you are aware of and take a detailed inventory of any property that is damaged. You may be asked to submit this documentation upon filing the claim.
3. Make any necessary repairs to protect your home from further damage, if safe to do so. Keep receipts for any items you have to purchase, like a tarp, so you can get reimbursement for your out-of-pocket costs.
4. Contact the insurance company or your agent to begin the process of filing the claim. You will need to provide information, including the date the damage occurred, the cause (if known), the specifics about the foundation damage, and any temporary repairs you’ve made. The agent or representative will advise you on your deductible and coverage, and the claims department will assign an adjuster who will come out to assess the damage and provide the next steps of the claims process.
5. Reach out to contractors in your area.Your insurer may work with a network of contractors you can contact. If not, you can ask for referrals from friends and family or contact a company of your choosing. The contractor can work with your insurance company to process the claim, make sure your home is safe, and complete repairs.

What Are The Signs Of Foundation Damage?

Maintaining your home’s foundation is just another task homeowners are responsible for. Before you buy a home, hire an inspection company to do a full home inspection, which will include checking the condition of the foundation. You may also benefit from an annual home inspection from an expert, which can help you identify early warning signs before they become bigger, and more expensive, problems.

Here are some signs that your home could have foundation damage:

• Basement wall and floor cracks
• Doors and windows stick, have gaps, or won’t open or close properly
• Uneven or slanted floors
• Moisture, mold, or mildew
• Tilted chimney
• Sinking of attached structures like stoops or porches
• Walls bowing inward

If you notice any signs of or have concerns about foundation damage, schedule an appointment with a home expert to verify and assess the potential damage.

How Do You Prevent Foundation Damage?

It is the homeowner’s responsibility to maintain their property, including routine checks for potential shifting or cracking. Taking the steps to prevent foundation damage can minimize your risk of serious problems in the future.

There are several ways to help prevent foundation damage, including:

• Divert water away from your home’s foundation by adding gutters and downspouts and keeping them clean.
• Maintain the grass and foliage around your home to help keep pests and rodents away.
• Monitor soil moisture levels and water or add mulch as needed.
• Avoid planting trees near the home as the roots can crack the foundation or the sewer or water line.
• Grade your yard so water runs away from the foundation instead of towards it.

If you notice any early warning signs, like cracks in the foundation, schedule an appointment with a professional to evaluate the situation and provide any necessary remedies.

 

Conclusion

Establishing a strong financial foundation early on can help you prevent cracks down the road if the unexpected happens. Just remember, as with everything in life, your financial needs and responsibilities will change – especially as you reach different life milestones – so giving that foundation regular inspections and performing “maintenance” can help ensure it stands the test of time.