The insurance risk transfer involves trying to remove some of the negative economic consequences of accidents, so that the amount of damages or losses suffered by a party are distributed among a community of people that jointly supports with a much smaller effect than if the damage is presented individually.
Insurance has two major role in society: Social Security, which is a mandatory coverage, administered by the state, aimed at providing protection and welfare of citizens, usually ensuring a financial benefit upon retirement, disability, death, unemployment, etc.
Private insurance that cover and protect persons or entities, subscription may be mandatory or voluntary. Examples of private insurance is insurance for theft or fire of a building or car accident insurance. The insurance contract is one for which the insurer undertakes, by charging a premium and if the event occurs whose risk is hedged within agreed limits, the damage to the insured will be covered based on Home Building Insurance.
Insurance companies are financial intermediaries from the economic and financial standpoint. This sector differs from other economic sectors in which to start business, a relatively small fixed capital is needed, since it does not need to make large investments in assets to conduct its business.
The Home Building Insurance, by its nature, makes long-term investment which, in general, was not even considered by the policyholders. However, it is savings from the financial point of view is very stable and long term.
Obviously selling a house without an agency is tempting: let’s face it, the saving of the commission can mean a little money saved, right? You can try. A lot of people do it. It is how to buy a lottery ticket. Millions of people do it, and every now and then someone wins, but the vast majority of people lose money or lotteries would not be there.
In the same way every now and then a seller wins the prize (he manages to sell the house alone at the right market price, and in a few months), but the vast majority needs an agent or the real estate sector would not be here. Selling a house in 4 months or 1 year makes the 8% difference. Yes, because the real estate market is losing 1% in value every month, and by doing so, selling now or selling in 1 year means earning 12% more.
I’ll ask you a question: do you care not to pay a Professional to help you sell your home by reducing sales time to save on your compensation, or you are interested in earning 6/8% more on the value of your home, already net of the commission professional estate agent?
