Insurance protects against accidents that you are not aware of at the time you purchase the policy. If there has already been a loss – there has been an auto accident, someone slipped and injured himself or herself on your property, there was a fire or a theft, you’ve been sued – it is already too late. You can’t insure a known loss. If the loss has already happened, you can’t purchase an insurance policy to cover the loss. Therefore, you need to shop for insurance quotes and purchase insurance now, before you suffer a loss.
Insurance policies generally insure against losses, accidents or occurrences, which are all defined as having a component of being unexpected. Further, many policies expressly limit coverage to losses, accidents or occurrences of which the insured was not aware prior to the inception of the policy. In an application for insurance, you will be asked to disclose losses of which you are aware. The losses you disclose will not be covered under the policy. If you fail to disclose a loss of which you are aware and the insurer learns of this failure, the insurer may be able to rescind your policy. Also, policies may contain specific exclusions to exclude coverage for known losses. In addition, the law generally does not permit the insurance of known losses. Even if the loss is ongoing, or a “loss in progress,” you will not be insured for any part of the loss to the extent you were aware that the loss began prior to the inception of your policy.
Make sure to shop for insurance quotes and purchase insurance now, before there is an accident or loss for which you need insurance. Otherwise, it will be too late to do so after the fact and you will not be covered for that loss under any policy you purchase.