What is Cargo Coverage? Understanding Freight Insurance Policies

Cargo coverage is essential when shipping goods, providing protection against damage, theft, or loss during transit. In this guide, we'll explain what cargo coverage is, the types of insurance available, and how to choose the right protection for your shipments. Whether you're shipping cars, machinery, or other valuable items, understanding cargo insurance can save you from unexpected costs and ensure a safe delivery.

What is Cargo Coverage?

Cargo coverage, often referred to as cargo insurance, is a vital aspect of the freight and shipping industry. It refers to the protection provided for goods during transportation, covering potential losses or damages that may occur while the goods are in transit. Whether you're shipping a car, electronics, or construction materials, cargo coverage helps ensure that you are financially protected in case something goes wrong.

Understanding Cargo Coverage

In simple terms, cargo coverage is a type of insurance that protects the value of your goods while they are being transported from one location to another. This protection is crucial, as accidents or unexpected events such as theft, natural disasters, or accidents on the road can happen at any time during transit.

When you ship a vehicle, for example, without cargo coverage, you risk losing the vehicle's value if it gets damaged during shipping. This is particularly important for people who want to save money on car delivery, as any unexpected repair costs or losses could impact their overall savings. By investing in cargo coverage, you ensure that you're protected from such financial setbacks.

What Does Cargo Insurance Cover?

Cargo insurance covers various risks, but the extent of the coverage can vary depending on the policy you choose. Here are the key aspects generally covered:

Damage During Transit
Cargo insurance covers damage to goods during transport, including vehicles. Whether it’s due to a traffic accident, bad weather, or other unexpected events, your goods are protected financially.
Theft
If the goods are stolen during transit, cargo coverage will help cover the loss. This is especially important if you're shipping valuable items, like a car, where the cost of replacement or repairs could be high.
Natural Disasters
Unforeseen natural events such as floods, hurricanes, or earthquakes can cause significant damage to cargo. Cargo coverage will help protect your shipment from these unexpected risks.
Accidents or Mishandling
In cases where your goods are damaged due to poor handling, accidents, or even improper loading, cargo insurance will step in to cover the costs of repair or replacement.

Why is Cargo Coverage Important?

For people who want to save money on car delivery or other shipments, cargo coverage becomes essential for peace of mind. Without it, any damage or loss would come directly out of pocket, potentially eroding the savings made from choosing a budget-friendly shipping option. Cargo coverage not only protects the financial investment in the goods being shipped but also offers reassurance that your shipment is in safe hands.

Moreover, in freight logistics, cargo insurance is often a requirement for shipping companies, carriers, and freight brokers. Having proper cargo coverage ensures that the carrier will take care of any mishaps that occur during the journey, which also builds trust between shippers and clients.

Types of Cargo Insurance Policies

When it comes to cargo insurance, two primary types of policies are commonly offered: all-risk insurance and named-peril insurance. Each of these policies provides different levels of coverage, and understanding the difference is key to choosing the right one for your needs. Whether you’re shipping a car, machinery, or goods for personal use, the type of cargo insurance you select will determine how much protection you receive during transit. Let's break down these two types of cargo insurance policies to help you make an informed decision.

1. All-Risk Insurance

Definition:
All-risk cargo insurance is the most comprehensive type of coverage available. As the name suggests, it covers all types of risks or damages to your cargo during transit, except for a few specific exclusions that are outlined in the policy.

What it Covers:

Accidental Damage: If your cargo is damaged in an accident, whether it's a car crash, a collision with another vehicle, or some other unforeseen event, all-risk insurance will cover the cost of repairs or replacement.
Theft: If your cargo is stolen during transportation, this policy covers the loss, allowing you to recover the value of the goods.
Weather-Related Damages: All-risk insurance also covers damages due to natural disasters such as storms, floods, or hurricanes.
Mishandling: This policy will protect you if your cargo is damaged due to improper handling during loading, unloading, or transit.
Loss During Transit: In cases where goods are completely lost during transport (e.g., if a vehicle or container is lost in transit), all-risk insurance provides compensation for the full value of the goods.

Why Choose All-Risk Insurance?

For those who want maximum protection, all-risk insurance offers peace of mind knowing that almost every possible risk is covered. It’s especially beneficial if you’re shipping valuable items like cars or expensive machinery, where the cost of loss or damage could be significant.

However, all-risk insurance is typically more expensive than named-peril insurance, so it's important to weigh the additional cost against the value of the items you are shipping. If you want the most comprehensive coverage available to avoid financial setbacks in case of unforeseen issues, all-risk insurance is the ideal choice.

2. Named-Peril Insurance

Definition:

Named-peril insurance provides coverage for only the specific risks or "perils" that are listed in the policy. Unlike all-risk insurance, named-peril insurance excludes coverage for any other incidents or events not explicitly mentioned.

What it Covers:

Specific Risks: The coverage is limited to the named risks in the policy. For example, common named perils include damage from fire, theft, collision, or storm damage.
Loss from Named Causes: If your goods are lost or damaged due to one of the listed causes (e.g., flooding, crashing, or fire), you will be compensated for the loss.

Why Choose Named-Peril Insurance?

Named-peril insurance is typically less expensive than all-risk insurance because it covers fewer situations. For budget-conscious individuals looking to save on car delivery or other shipments, this type of policy may be a more affordable option. It offers protection against specific, high-risk events, making it suitable for shipments that are less likely to face a broad range of hazards.

However, it’s essential to carefully review the list of named perils and ensure that the most likely risks to your cargo are covered. For example, if you’re shipping a vehicle and there’s a significant chance of theft or accidental damage, you may want to ensure these risks are explicitly included. If you’re comfortable with a more limited scope of coverage and want to save on premiums, named-peril insurance can be an effective choice.

Key Differences Between All-Risk and Named-Peril Insurance

Aspect	All-Risk Insurance	Named-Peril Insurance
Coverage Type	Covers all risks except for specific exclusions.	Covers only risks specifically listed in the policy.
Cost	More expensive due to broader coverage.	Less expensive due to limited coverage.
Protection	Offers maximum protection, including accidental damage, theft, and weather-related risks.	Protection is limited to the risks listed in the policy.
Ideal For	High-value goods, vehicles, or when maximum protection is required.	Lower-value items or when specific, named risks are the primary concern.

What Does Cargo Insurance Cover?

Cargo insurance is designed to protect your goods during transit, covering a wide range of potential risks and ensuring you don’t face significant financial loss if something goes wrong. When shipping items, especially valuable ones like cars, machinery, or electronics, it's essential to know exactly what risks cargo insurance will cover. Below, we’ll break down the primary situations that cargo insurance covers, including damage, theft, accidents, and natural disasters.

1. Damage During Transit

One of the most common scenarios cargo insurance covers is damage that occurs during the transportation of goods. Whether you’re shipping a car, building materials, or consumer goods, transit damage can happen due to various reasons, including poor handling, sudden stops, or mishaps during loading and unloading.

Examples of Damage:

Scratches and Dents on Vehicles: If a car is damaged during loading or unloading from a truck or container, cargo insurance will cover the repair costs.
Broken Equipment: Machinery or electronic equipment can be damaged if it’s mishandled during transit. If the equipment is damaged beyond repair, the cargo insurance can cover the replacement cost.
Structural Damage to Freight: If heavy machinery or materials are mishandled, they may become bent or otherwise structurally compromised. Cargo insurance would cover the cost of fixing or replacing them.

For anyone shipping valuable items on a budget, like used cars, cargo insurance is essential to protect against unexpected damages during the delivery process.

2. Theft

Theft is another risk that cargo insurance covers. Shipping valuable items, such as vehicles, electronics, or construction tools, exposes them to the risk of being stolen, especially if they’re left unattended at certain points during the journey.

How Theft Coverage Works:

Vehicle Theft: If a car is stolen during transit, cargo insurance will reimburse the shipper for the vehicle’s value, minus any deductibles.
Theft of Other Goods: In the case of cargo like machinery or electronic devices, theft protection ensures that the full value of stolen goods is reimbursed.

For budget-conscious individuals who want to ensure their car arrives safely at its destination, theft coverage provides the peace of mind that the value of their vehicle is protected throughout its journey.

3. Accidents During Transportation

Accidents during transit, such as collisions or rollovers, are another common scenario that cargo insurance covers. Whether the accident happens on the road, at sea, or in the air, these incidents can cause serious damage to the cargo being transported. Cargo insurance protects the value of the goods in the event of such accidents.

Examples of Accidents:

Road Collisions: If a flatbed truck carrying a vehicle is involved in an accident, cargo insurance covers the damage to the vehicle.
Shipping Accidents at Sea or Air: For international shipments, accidents during sea or air transport (like a shipwreck or airplane malfunction) could result in cargo being damaged or destroyed. Cargo insurance covers the cost of the goods lost in such accidents.

Accidents are unpredictable, and while you can’t control them, cargo insurance helps ensure that your valuable goods, whether cars or construction materials, are covered if they’re involved in an incident during transport.

4. Natural Disasters

Natural disasters, such as floods, hurricanes, earthquakes, or wildfires, pose significant risks to cargo in transit. Even though they’re rare, these events can cause extensive damage to goods, especially if they’re being shipped across areas prone to such disasters.

How Natural Disaster Coverage Works:

Flooding: If the cargo is damaged due to flooding during transport or while stored in a vulnerable area, cargo insurance will compensate for the loss.
Hurricanes and Storms: Ships, trucks, or planes carrying goods through storm-prone areas might experience delays or damage due to harsh weather conditions. Cargo insurance covers the financial losses caused by these events.
Earthquakes or Wildfires: Cargo that is damaged or destroyed due to earthquakes or wildfires would also be covered by most cargo insurance policies.

For individuals shipping cars internationally or over long distances, natural disaster coverage can be particularly important. It ensures that even if a freak event causes damage to your shipment, you won’t bear the full financial burden.

Why Cargo Insurance is Crucial for Budget-Conscious Shippers

For those looking to save money on car delivery or other shipments, cargo insurance might seem like an extra cost, but it is actually an investment in protecting your goods. Without cargo insurance, any damage, theft, or loss would fall entirely on you, potentially negating the savings made from a cheaper shipping option.

By securing cargo insurance, you ensure that even if something goes wrong during transport—whether it’s an accident, theft, damage, or a natural disaster—you’ll be reimbursed for your losses. This allows you to ship your items without worrying about unexpected costs that could wipe out your budget.

How to Determine the Right Cargo Coverage

Choosing the right cargo coverage for your shipment can be a complex decision, but it’s crucial to ensure that your goods are protected during transit. The right coverage not only gives you peace of mind but also protects your investment, especially if you're shipping valuable or fragile items like vehicles, electronics, or machinery. To determine the appropriate cargo insurance for your needs, you’ll need to consider several key factors: the value of the freight, the level of risk associated with the shipment, and the cost of coverage. Let’s break down these factors and help you make an informed decision.

1. Freight Value

One of the first and most important factors to consider when determining cargo coverage is the value of the goods you're shipping. The higher the value of your freight, the more comprehensive the insurance coverage you’ll need to ensure you’re adequately protected in case of damage, theft, or loss.

Considerations for Freight Value:

High-Value Shipments: If you're shipping expensive items such as luxury cars, machinery, or high-tech equipment, you’ll want to opt for all-risk cargo insurance. This policy provides broad coverage, protecting your high-value goods from a wide range of potential risks, including accidents, theft, and weather-related damages.
Lower-Value Shipments: For lower-value goods, such as standard vehicles or everyday consumer products, named-peril insurance may be sufficient. This policy is more affordable and covers a limited list of specific risks, such as fire or theft, making it a cost-effective option for lower-value shipments.

In general, the higher the value of the cargo, the more comprehensive your coverage should be. This is especially important if the cost of replacing or repairing the goods exceeds what you’re willing to pay out of pocket.

2. Risk Level

The risk level associated with your shipment is another key factor when selecting cargo insurance. Risk is influenced by various elements, including the type of goods being shipped, the route, and the conditions in which the goods will be transported.

Factors That Impact Risk Level:

Type of Goods: Fragile or sensitive items, such as vehicles, electronics, or perishable goods, carry a higher risk of damage during transit. These goods may require more specialized coverage, such as all-risk insurance, to ensure they are protected against any type of accident or mishandling.
Route and Transportation Mode: The shipping route and mode of transportation play a significant role in determining risk. If you're shipping a vehicle internationally by sea or air, these methods may expose your goods to greater risks due to weather conditions, potential accidents, or mishandling at ports. In contrast, domestic land shipping may have fewer risks but still exposes goods to road accidents or theft. The more hazardous the route, the more comprehensive your coverage should be.
Distance and Duration: Longer shipments, especially those crossing international borders or requiring multiple handling points (e.g., loading and unloading at different locations), may have higher risks. In these cases, opting for a policy that covers a broader range of risks—such as all-risk cargo insurance—could be a better choice.

Understanding the risks specific to your shipment will help you select the right policy. If you're shipping a car internationally, for instance, you might face higher risks due to weather, theft, or handling at various ports, making it essential to have comprehensive coverage.

3. Cost of Coverage

The cost of cargo insurance is often a deciding factor for budget-conscious individuals or businesses. While it's important to secure adequate protection for your goods, you also need to balance the cost of coverage with your budget. Cargo insurance premiums are generally based on the value of the goods being shipped, the level of coverage chosen, and the level of risk associated with the shipment.

Balancing Cost and Coverage:

Budget-Friendly Options: If you're trying to save money on shipping, especially if you're shipping a used car or low-value goods, named-peril insurance may offer sufficient protection at a lower cost. This policy is more affordable because it covers fewer risks, but it can still protect your shipment against significant threats like theft or fire.
Comprehensive Coverage for High-Risk Shipments: For higher-value or more fragile shipments, such as luxury cars, machinery, or expensive electronics, it may be worth investing in all-risk cargo insurance. Although this policy is more expensive, it provides broader protection, ensuring that your goods are covered in case of nearly any unexpected event.

When determining the right level of coverage, it’s essential to assess whether the extra cost of a more comprehensive policy is justified by the value of your shipment. For example, if you're shipping a car worth thousands of dollars, the potential cost of damage or loss could outweigh the cost of paying for full coverage.

Steps to Purchase Cargo Insurance

Purchasing cargo insurance is an essential step to ensure that your goods are protected during transit, especially if you're shipping valuable or fragile items such as vehicles, machinery, or electronics. While the process may seem complex, it can be broken down into simple steps that will help you secure the right coverage for your needs. Whether you're handling the insurance yourself or working with a freight broker, here’s a step-by-step guide to help you navigate the process and make an informed decision.

1. Assess Your Shipping Needs

Before you can purchase cargo insurance, you need to assess the specific needs of your shipment. Understanding the value of your goods, the level of risk, and the type of transportation being used will help you determine the coverage options that are most appropriate.

What to Consider:

Value of Goods: Estimate the monetary value of the goods you're shipping. If you’re shipping a used car, for example, you’ll need to know its current market value to ensure you get adequate coverage.
Type of Goods: Consider the fragility of your items. High-value or delicate items, like vehicles or machinery, might require more comprehensive insurance (such as all-risk coverage).
Route and Transportation: The shipping route and method (e.g., land, sea, or air) influence the level of risk. International shipping, for instance, generally carries higher risks due to factors like weather, theft, or mishandling at ports.

By assessing these factors, you can make a better decision about the type and amount of coverage needed for your shipment.

2. Research Insurers and Coverage Options

Once you’ve assessed your shipping needs, the next step is to research available cargo insurance providers and policies. There are various insurers and brokers that offer different types of coverage, so it’s important to find one that aligns with your needs and budget.

Where to Look:

Freight Insurers: These companies specialize in insuring goods in transit. Many of them offer tailored policies depending on your shipping needs, whether you're looking for basic coverage or comprehensive all-risk insurance.
Freight Brokers: A freight broker can help you find the best insurance options. They often have relationships with multiple insurance providers and can guide you through the process of selecting and purchasing coverage.
Online Platforms: Many online platforms also offer cargo insurance, which allows you to compare different policies and prices quickly. These platforms may offer a range of options, from named-peril insurance to all-risk coverage.

Take the time to compare coverage options, read reviews, and look at the reputation of insurers to ensure you’re choosing a reliable provider.

3. Understand the Types of Coverage

When selecting cargo insurance, you’ll come across different types of coverage. Understanding the differences will help you choose the one that best fits your shipment needs.

Key Types of Cargo Insurance:

All-Risk Insurance: This policy offers the broadest coverage, protecting against nearly all types of damage, loss, or theft. It’s ideal for shipping high-value or fragile goods that require the highest level of protection.
Named-Peril Insurance: This policy is more affordable but covers only specific risks that are named in the policy. Common covered events include fire, theft, or specific types of damage. This might be suitable for lower-value shipments or less risky routes.
General Average Coverage: This type of insurance is specific to maritime shipping and covers the shared costs if goods are lost or damaged due to an event like a shipwreck. It's often included in ocean freight shipping.

Understanding the different types of cargo insurance will help you choose the right policy for your shipment, balancing risk and cost effectively.

4. Get a Quote and Review the Terms

Once you’ve identified potential insurers or brokers, you’ll need to get a quote for your cargo insurance. This quote will be based on factors like the value of your goods, the risk level, and the type of coverage you select.

Key Steps in Getting a Quote:

Provide Accurate Information: Be prepared to provide accurate details about your shipment, including the type of goods, their value, and the route they’ll take. The more precise the information, the more accurate the quote will be.
Request Multiple Quotes: It’s a good idea to request quotes from multiple insurers or brokers to compare prices and coverage options. This will help you find the best deal for your shipment’s needs.
Review the Terms: When reviewing the quote, pay attention to the terms and conditions of the policy. Understand the deductibles, exclusions, and any special provisions. Ensure that the policy covers the full value of your goods and the risks associated with your shipment.

Be sure to clarify any doubts before moving forward with purchasing the policy. If you’re unsure about specific terms, ask the insurer or broker to explain them in simpler terms.

5. Purchase the Insurance

Once you’ve selected the right insurance policy, it’s time to purchase the coverage. This can usually be done online or through a broker. You’ll need to sign the policy agreement and make the necessary payment for the premium.

What to Expect:

Policy Confirmation: After purchasing, you’ll receive a policy confirmation, which will outline the details of the coverage, including the types of risks covered, the amount of coverage, and the duration of the policy.
Proof of Coverage: Make sure you get a certificate of insurance or proof of coverage. This is important if you need to make a claim later, as it proves that the goods were insured during transit.

Once you’ve secured the insurance, make sure to keep the documentation in a safe place, as it will be necessary in case of a claim.

6. Monitor the Shipment and Ensure Compliance

After purchasing the insurance, it’s essential to monitor your shipment and ensure that all conditions for the insurance coverage are met. In some cases, insurers may have specific requirements for how goods should be packed, handled, or secured.

What to Do:

Track the Shipment: Keep track of your shipment to ensure it’s on schedule and hasn’t encountered any issues. Many insurers will require timely notifications in case of any delays or damages.
Ensure Proper Handling: Follow all recommendations for packing and handling the goods to ensure the insurance policy remains valid. For example, if you’re shipping a vehicle, ensure it is securely loaded and properly protected.

By staying on top of the shipment, you can avoid any issues that could void your insurance policy or delay claims in the event of damage or loss.

How to File a Cargo Insurance Claim

Filing a cargo insurance claim can seem overwhelming, especially when dealing with damaged, lost, or stolen goods during transit. However, understanding the proper steps can help simplify the process and ensure that you are compensated fairly for your loss. Whether you’re shipping vehicles, electronics, machinery, or any other valuable goods, following the right steps will help you efficiently file your claim and get the reimbursement you deserve. Here’s a step-by-step guide to help you through the cargo insurance claims process.

1. Assess the Damage or Loss

The first step in filing a cargo insurance claim is to carefully assess the situation. Identify the damage, theft, or loss that has occurred, and document it thoroughly.

What to Do:

Inspect the Goods: Once your goods arrive at their destination, immediately check for any visible damage or signs of tampering. For example, if you’ve shipped a vehicle, check for scratches, dents, or any other damages that could have occurred during transit.
Report Any Losses: If items are missing or there is significant damage, report the loss immediately to the carrier or shipping company. It’s crucial to do this as soon as possible because many insurers have a time limit for filing claims.
Take Detailed Photos: For damaged goods, take clear photographs of the damages from multiple angles. For missing items, document the packaging and any evidence that might help show that the items were lost during transit. Photos are essential for proving your claim and speeding up the process.

2. Notify the Insurance Company

Once you've assessed the situation and documented the damage or loss, the next step is to notify your insurance provider or broker. Inform them that you need to file a claim.

What to Do:

Contact the Insurer Promptly: The sooner you contact the insurer, the better. Insurers typically have specific time frames in which claims must be filed after an incident occurs. Delaying this step may result in a denial of your claim.
Provide Claim Details: When contacting the insurance company, provide as much information as possible about the incident. This includes the shipping company’s name, the bill of lading number, the shipment’s tracking number, and a description of the damage or loss. The more details you can provide, the faster the claims process will go.

3. Complete the Claim Form

After notifying the insurer, you’ll need to complete the official claim form provided by your insurance company. This form will request detailed information about the shipment, the loss, and the circumstances surrounding the damage or theft.

What to Include in the Claim Form:

Shipment Details: Include the shipment’s origin, destination, and the date it was shipped.
Details of the Loss: Provide specifics about how and when the damage or loss occurred. For example, if the damage occurred during transit, explain the likely cause, whether it was due to rough handling or weather-related conditions.
Proof of Value: Attach documentation proving the value of the goods being shipped. This could include receipts, invoices, or appraisals. For high-value goods like vehicles, it’s essential to have proof of their current market value.

Make sure to fill out the claim form accurately and completely. Any missing or incorrect information could delay the process or result in a claim denial.

4. Submit Supporting Documentation

In addition to the claim form, you’ll need to provide supporting documentation to back up your claim. This could include a combination of photographs, shipping documents, receipts, and other relevant paperwork.

What to Include:

Photos of the Damage or Loss: As mentioned earlier, photos are essential for proving your claim. Ensure that the images are clear and show the full extent of the damage or the missing items.
Bill of Lading: This document proves that your goods were shipped and outlines the terms and conditions of the shipment. It’s essential to include this as part of your claim.
Shipping and Delivery Records: Provide records that confirm the goods were delivered to the destination, including the delivery receipt signed by the consignee.
Repair Estimates (if applicable): If the goods can be repaired, you may need to provide an estimate from a qualified repair service to show how much it will cost to restore the items.

The more evidence you provide, the smoother the claims process will be, and the faster you can receive compensation.

5. Follow Up on the Claim

After submitting your claim, it’s important to follow up with the insurance company regularly to check on its progress. Claims can take some time to process, depending on the complexity of the case and the amount of documentation involved.

What to Do:

Contact the Insurer: If you haven’t received any updates within a reasonable timeframe, reach out to the insurance company to inquire about the status of your claim.
Keep Detailed Records: Keep a record of all communications with your insurer, including phone calls, emails, and letters. This will help you track the progress of your claim and provide evidence if there are delays.

By staying proactive, you can ensure that your claim is processed as quickly as possible.

6. Receive Compensation or Settlement

Once your claim has been reviewed and approved, you will receive compensation for your loss or damage. The insurer will either reimburse you for the value of the damaged goods or offer a settlement based on the terms of your policy.

What to Expect:

Payment Process: The insurance company will either pay the amount directly to you or the shipper, depending on the terms of your policy. The compensation amount will typically be based on the replacement cost or market value of the goods, minus any deductible.
Possible Negotiation: If you feel that the settlement offer is not sufficient or fair, you may have the option to negotiate with the insurer. Having all the necessary documentation and proof of the value of your goods will help strengthen your case.

Once compensation is received, you can use it to repair or replace the damaged or missing goods.

7. Close the Claim and Finalize

After the claim is settled and you have received your compensation, the final step is to close the claim. Be sure to review all paperwork carefully to ensure everything is correct and that you have received the appropriate reimbursement.

What to Do:

Review the Settlement: Double-check the settlement amount and ensure it matches the agreed-upon terms. If there are any discrepancies, contact the insurer to resolve them.
Complete Any Final Documentation: If required, complete any final documents or surveys from the insurer to officially close the claim.

Once everything is resolved, your cargo insurance claim will be considered closed, and you can move forward with your business or shipping needs.

Common Mistakes to Avoid in Cargo Insurance

When it comes to cargo insurance, making mistakes can be costly. Whether you’re shipping vehicles, machinery, or consumer goods, having the right coverage is essential to protect your investment. However, many shippers, especially those on a budget, can make critical errors that may lead to significant financial losses in case of damage, theft, or accidents. Below are some of the most common mistakes to avoid when purchasing cargo insurance, along with tips on how to ensure you’re properly protected.

1. Not Understanding the Coverage Terms

One of the biggest mistakes people make when purchasing cargo insurance is not fully understanding the terms of their policy. Every cargo insurance policy is different, and it’s crucial to know exactly what is covered and what isn’t. Many individuals assume that their insurance will cover all risks, but this is often not the case.