How To Buy insurance
Insurance is a contract that we cover, by paying a payment, the possibility of a risk or may not occur during the period in which we are covered by the same (usually the annuity).
More precisely, according to the Insurance Act *:
“The insurance contract is one for which the insurer undertakes, by charging a payment and if the event occurs to compensate within the agreed limits, the damage to insured or meet capital, income or other agreed services “.
Then we make for the possibility that, by chance, an event or contingency that generates a need for repair on our goods occurs, especially on the third with whom we interact every day (neighbors, pedestrians, drivers persons, etc.).
Contingency is a possible, uncertain and future event, capable of causing damage which a capital need arises.
This event or event, so that it can ensure, should be:
-Possible, Because insecurity exists and if it did not we would not have insurance,
-Uncertain, Because if it was necessarily to happen, nobody would assume the obligation to repair it.
Without risk there can not be insrurance, because in the absence of the possibility of harmful event occurs, or it may be hurt or think fit compensation.
An insurer (insurance company) can not take the risk of an abstract way, but delimits through the insurance contract. As each individual situation or things are different, so is the risk to be covered.
Therefore, an insurance contract describes a risk that must be duly individualized, and not all risks are insurable, which delimits and individualizes within the contractual relationship.
* Insurance is regulated by Law 50/1980, of 8 October, the Insurance Contract Act