Aurora, IL Renters Insurance: Are You Your Own Insurance Company?
Do you have Aurora, IL Renters Insurance?
If not, then you’re self-insuring, and you should make sure that you’re in an appropriate position to do that. Otherwise, you and your family could be at grave financial risk.
What is self-insuring? It’s the act of retaining some or all of the risk of things happening to you or your property, with the implicit agreement that you will make yourself whole after a loss. If you don’t have renters insurance in Aurora, IL, you’re self-insuring.
Large companies often self-insure certain types of risks, but they do it the right way with all of the proper procedures followed. This allows them to add to the pool of money used to pay for those types of losses without being unduly exposed. If you’ve chosen to self-insure, you may be missing out on some of these tactics that large companies use, and as a result you may be exposed.
If you’ve chosen to go without Illinois Renters Insurance, you’re self-insuring. There’s an unlimited amount of risk that you’re retaining, so you might be interested in how companies self-insure without risking the entire business.
Are you separating the risk? If a large company self-insures a large risk like workers comp, it’s within the context of a smaller part of their operations. They’re not self-insuring the entire company, they’re limiting risk to a certain part of the company. You as an individual don’t have the ability to do that if you don’t have Aurora, IL renters insurance.
Do you have reinsurance? Or some sort of stop-loss policy? Large companies who self-insure find that they’re well-served by having a policy to limit their exposure. The company contributes to a pool of money that will be used to pay claims up to a certain level, let’s say a million dollars for the sake of argument. Then they buy a policy that covers the next five million dollars of expenses after they’ve paid that million that they’ve set aside for the purpose. If you don’t have a policy like that, you shouldn’t be self-insuring your risk, particularly your liability risk.
Can you afford to start a captive insurance company? This is an insurance company, generally with reinsurance and all the trappings of an insurance company, with formal policy documents and most of the regulatory compliance fun that comes with running an insurance company. A captive serves one or a few insureds, generally, and usually requires at least $250,000 of paid in capital, though often much more is appropriate. Vermont and Bermuda are popular domiciles to start your own captive insurance company.
Why are we asking these ridiculous questions? To make the obvious point that it’s unnecessary and a major increase in risk to self-insure instead of having renters insurance. When Aurora, IL Renters Insurance costs about fifteen dollars a month and saves you from all the trouble of self-insuring, there really are no good reasons to every self-insure in lieu of having renters insurance.
Most people who don’t have renters insurance haven’t made a choice to self-insure per se, and they have no desire to do something patently ridiculous like start a captive insurer to cover their own liability risk. The amount of money involved just doesn’t make sense, in that example. Most people who lack renters insurance just think they don’t need to spend the money.
Most people who lack renters insurance also haven’t thought about the fact that their risk is unlimited on both a practical and a legal basis if they’re sued, or if they lose everything in an apartment fire that their neighbor started. Most people can’t afford to replace everything they own in a single shot. If you can’t afford to absorb the loss, you can’t afford to self-insure and you should have renters insurance.
Fortunately, it’s easy to get covered and very affordable. It’s also quick. You can be covered in about a minute online, or you can work with a renters insurance expert to tailor coverage to exactly what you need. Just call (800)892-4308 or click to get covered - whether you need Aurora, IL renters insurance quotes online or coverage anywhere else!
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