Insurance can be confusing. Some people want the bare minimum and some want everything covered. It’s important to make sure you have enough insurance to cover your belongings and yourself. We broke it down into 5 types of insurance everyone should have to make insurance a little easier to navigate.
If you own a vehicle it is important to have car insurance. Not to mention, it’s kind of illegal to drive without it. In addition, if you have a financed vehicle, most lenders require full coverage. However, if you own your vehicle outright you can just carry liability… you know to stay legal. (Don’t try to be a rebel and go without in car insurance. It usually doesn’t end well.) Keep in mind though, liability only covers the other vehicle and will not cover any damages caused to your car. We recommend carrying a full coverage policy if you can’t afford to replace your vehicle if it’s totaled.
Home or Renters Insurance
Your home is your largest asset, and you don’t want to go without coverage. In addition, just like with a vehicle, if your home is financed it is required to have a homeowners insurance policy. A homeowners insurance policy will cover the home itself For someone that is renting a home or apartment, renters insurance will cover their personal belongings. A landlords insurance policy usually only covers the dwelling itself, not your belongings.
Umbrella Insurance is a policy that covers you from major financial loss should you max out your homeowners or auto insurance due to a lawsuit or large claim against you. For example, say you are being sued for a 1-million-dollar settlement after a car accident. Your auto insurance policy limits were already met; therefore, you are on the hook for the remaining dollar amount of the settlement. On the other hand, if you have an umbrella policy, this policy will then kick in saving you from a large financial loss.
Life Insurance is one of those policies no one wants to talk about due to the nature of the policy. Death is not one of the fun things to talk about… it’s right up there with getting a root canal. However, it’s something you need to have if you have a family. Life Insurance protects your family’s future if you pass. It allows your family to grieve the loss without having to immediately worry about finances. There are two types of life insurance policies, Term-Life Insurance and Whole Life Insurance. Term-Life is coverage for a set term and whole life is coverage that starts once the policy is in effect until death. Not sure which is best for you? Your insurance agent can help walk you through which would be your best option.
Valuable Possessions Insurance
Most people think their valuable possessions, such as their vintage painting or expensive wedding ring, are covered under their Homeowners policy. However, that is no longer the case. Under your homeowner’s policy, most possessions are covered at actual cash value and are only covered up to a certain limit. A Valuable Possessions policy makes sure that your possessions are covered for their actual worth if lost, stolen, or damaged.
If you are unsure about the type of insurance you need, reach out to your agent. They can help you navigate the types of policies you need.