Explain My CoveragePosted on Feb 12, 2019
Understanding the types of insurance coverages available is a critical part of protecting you and your families financial security. Below are some of the top insurance coverages the average household requires.
Auto Insurance Coverage
Auto insurance coverage provides financial protection if you are in an auto accident. The type of protection you receive depends on the type of coverage you have. For instance, some people buy only the state minimum coverage for their vehicles, which pays for damage you do to other vehicles and properties and provides limited protection for injuries you cause.
However, it does little, if anything, to protect your investment in your own vehicle. For that, you will need a policy that offers comprehensive and collision coverage. Working with a trusted agency can help you get the coverage that best meets your needs.
Homeowners Insurance Coverage
If you own your home, you can’t afford not to have homeowners insurance protection. If you have a mortgage, you’re required to homeowners insurance. This coverage offers protection for the structure of your home, the possessions inside your home, and for liability resulting in injuries caused to others while they are on your property.
Renting a home doesn’t eliminate your need for insurance. You still have possessions that will need to be replaced if your house (or apartment) is damaged in a fire or a severe storm or another covered event. You also need the liability protection renters insurance provides if your apartment catches on fire damaging your neighbor’s apartment in the process.
Most homeowners and renters erroneously believe that their renters or homeowner’s policies protect them from floods. Most insurance companies specifically exclude flood damage from typical covered events. This means you must take out a separate policy to protect your property in the event of a flood. Make sure you discuss your concerns, your risks, and the type of flood insurance that would provide you with the best protection when buying insurance.
While your home policy, auto policy, and other types of insurance policies provide some protection for liability, it isn’t always adequate. This is where personal umbrella insurance protection comes into the picture. It offers you additional protection, beyond a standard liability policy, in case your legal fees, settlement costs, or judgments awarded against you exceed the limits of your existing liability coverage.
We live in a world fraught with perils. Some of them are acts of nature. Some acts of man. And others are the financial risks that simple accidents can transform into financial tsunamis. Having the right insurance coverage can protect you from these perils.