Pros

• Provides protection to you so you don’t have to worry about finding extra money to compensate you for damage and / or loss
• Can provide financial security for you and your loved ones if you are no longer able to unable to do so
• You will be able to plan better for the futureand have peace of mind
• You can save significant amounts of money if things go wrong
• There are numerous companies and policy types which can tailored to suit your needs and wants

Cons

• Insurance companies exclude many items and circumstances – be sure to read and understand the policy terms and conditions especially the exclusion
• If you make a claim, your premium generally increases upon renewal
• May not be worth the premium for ‘minor’ things or items of smaller monetary value
• You have to pay a premium
• It may take a long time to receive your money following a claim