Even if you are a careful person who lives a quiet life, there are some insurance types you should never be without; including property, disability, vehicle, and life insurance. Insurance can pay for damages or theft to your home and property, and enables your family to be able to afford their needs if you are disabled or deceased.
What Property Do You Need to Have Insured?
When thinking about what to insure and for how much, ask yourself these questions to determine your exposure to many different kinds of risk. What kind of property do you own? If you are a homeowner, can you afford to rebuild your home in the event of a fire or storm? When you have home insurance, restoration of your home is covered. If a theft takes place of items in your home, can you afford to replace those items? Homeowners or renter’s insurance covers your possessions. Do you invite guests over to your home? Liability insurance covers medical costs of someone who gets hurt on your property.
Homeowner’s or Renter’s Insurance
Homeowner’s insurance covers damage to your home and damage and theft of your personal property. This coverage also covers your liability if someone gets injured on your premises. If you have a mortgage on your home, homeowner’s insurance is required. Though renter’s insurance does not cover the cost of replacing a dwelling, it provides crucial coverage for your personal property and liability.
When you buy property insurance, be sure to ask what items are covered and which ones are excluded in your policy. Know the monetary limits for your policy and what occurrences are covered. Flood insurance may need to be added as a separate policy.
When your exposure to liability or property risk exceeds a traditional policy, an umbrella insurance plan could be the answer. The extra liability coverage will come in handy if the liability costs exceed your coverage. Umbrella insurance is available to add additional liability coverage to automotive and homeowner’s policies.
Disability and Life Insurance
If you become unable to work due to a long-term illness or injury, would your household’s bills be able to be paid? If the answer is no, then disability insurance may need to Assess the importance of maintaining a steady income should you become injured or disabled.
The USDA has calculated that the average cost of raising a child from birth to 18 years of age is $233,610. Whether you are the sole breadwinner or one of two parents working outside of the home, a loss of income due to death of a family wage earner can have catastrophic consequences. Even though it is not a pleasant subject, planning how your family will be supported in the event of your unlikely death can give you the peace of mind that you have planned for your family.
Automotive insurance is another type of insurance that has liability and Liability coverage is a given for your automotive insurance because of the high risk of vehicles colliding. State laws also require a small amount of coverage for your injuries that you have caused yourself through an accident you have caused. Many motorists choose to also pay for collision coverage, which pays a specified amount to the insured to pay for repair or replacement of a vehicle.
Other motorized vehicles may need their own specialized coverage as well. In 2015, the Coast Guard reported there were 4,158 recreational boating accidents that caused 2,613 injuries and 626 deaths. If you are a boat owner, ask if you need a separate policy for liability coverage.
For more information on all types of insurance that can preserve the financial health and well being of you and your family, contact your local insurance agency for a free consultation.