Anyone who owns a car or a home should invest in insurance to protect those assets.
Insurance acts as a safety net in case something unexpected happens to your investments. With the right insurance plan, a disaster or an accident does not necessarily mean that you have to lose your assets or dip into your savings account.
Insurance mitigates risk, and risks are even higher when you've taken out a bank loan in order to purchase your home or car.
When you take out a loan, the bank expects you to pay them back monthly with interest. Failure to pay back your debts could result in the bank confiscating your assets, and with them, your investments.
For this reason, insurance is especially important if you borrowed money from your bank in order to purchase an asset. The right plan will not only ensure that you don't have to dip into your savings to repair damages, but also that you can continue to pay back your debts and keep your property.
Why home insurance is important
Your home is likely the most expensive thing that you own. If something happens to your home, it could be incredibly costly to fix, if even possible to fix at all.
A number of events could occur that affect the value and habitability of your home. For example, a simple mistake could result in a fire, a natural disaster could cause major damage or a criminal could break in and destroy or steal your property. Not everything is within your control, and unexpected events can be costly.
Without home insurance, you would need to pay to repair these damages entirely out of pocket. In a worst case scenario, your home could be permanently uninhabitable and you may need to move. The right home insurance plan would pay you a significant portion of what your home cost you, making it easier for you to continue paying back your debts while finding a new place to live.
However, if you do not have home insurance, you could end up owing so much money that you cannot repay your debts. The bank then has the power to confiscate your home, otherwise known as foreclosure.
Banks are not particularly forgiving when disaster strikes, but home insurance will cover your assets and protect you and your family.
Why vehicle insurance is important
Similar to your home, your vehicle is probably one of your more expensive assets. You may have taken out a bank loan to purchase it.
Motor vehicle accidents are not uncommon, even for great drivers. If you get into an accident that causes significant damage, the repairs can be incredibly costly. Vehicle insurance pays some or all of the cost, allowing you to continue making your monthly payment to your bank.
If you do not have motor vehicle insurance, however, you will have to pay to repair your vehicle on your own, which could affect your ability to afford your monthly payments to your bank. If you fail to repay your debts to the bank, once again, they will come for your car and any other assets that make up the price.
How Trans Pacific can help
At Trans Pacific, we know that your home and car are some of your most important assets. We want to protect them and make sure that you can continue to pay back your debts.
If you choose the right plan with us, you will be covered in even the worst case scenarios. Contact us today to learn more.