You may wonder what the weather and insurance have in common.
They have a lot.
When the weather changes as it is changing now, risks on assets may increase or decrease.
Some insurance policies come in handy at this point.
These policies include property insurance, vehicle insurance, health insurance and agric insurance amongst others.
Additionally, we have marine insurance and goods- in- transit insurance policies.
This is because flooding is a possibility that can affect properties, health, vehicles, farming and transportation in the rainy season.
As we transition steadily into the rainy season, let us look at how the weather affects disposition to risk.
Firstly, flooding may displace residents temporarily or permanently from their homes.
Secondly, flooding may damage vehicle parts, particularly the engines.
Thirdly, flooding increases the chances of contracting water borne diseases.
Fourthly, flooding may yield low harvest for farmers.
The benefit of insurance in the above instances is the compensation that insurers receive if these eventualities befall them.
It is also important to point out the possibility of multiple losses at the same time.
Because the weather affects many things at the same time, there is a possibility for multiple losses.
For instance, a person may suffer temporary displacement from his/ her property due to flooding and suffer damaged vehicle and sickness due to flooding too.
If this happens, a person will receive compensation for insured assets.
And if an individual purchased insurance policy for all, he/ she will receive multiple compensation at the same time.
This is a major benefit of mitigating risk on many fronts.