Six Different Types of Insurance Coverage

If you are a renter, there are various insurance types that you probably do not need. For example, a renters insurance is a type of insurance that is used by people who rent their home and want coverage if they should suffer from a lost income, medical expenses and property damage. If they should die the property would be paid for by their renters insurance. This insurance is usually a necessary part of any rent payments. There are some cases when this insurance is a waste of money however.

Car insurance

Car insurance is another insurance type that you probably do not need. Car insurance covers you if you get into an accident with someone else’s vehicle. This insurance only covers your damages and does not cover your car. You will have to buy liability insurance which is the equivalent of car insurance. If your car is worth less than the amount of money that you have invested in your car insurance, you could be out of luck if you should get into an accident with someone else’s car.

Life insurance

Life insurance is one insurance type that you probably does need. Most life insurance companies will pay out on death and loss of income. This means that you can collect payments to ensure that your family can live off of your money for a few days or a few years after your death. If you are married, the surviving spouse will receive the equal amount of cash/cash value and the other person will get the difference- typically about 10% of the death benefit.

Health insurance

Health insurance is one insurance type that most people do not need. Health insurance only pays for healthcare expenses that you receive. This includes hospitalization and healthcare that is preventative like vitamins and preventive care. In addition to that, there is also disability insurance. This type of insurance only pays for healthcare expenses that you become seriously ill or that you suffer a disability that makes it impossible for you to work. The purpose of disability insurance is to make sure that if you do end up having to use healthcare that it is paid for.

lost income insurance

There is another insurance that is sometimes considered optional but is important enough to mention. It is known as lost income insurance. When you lose income from any number of factors- layoffs, overtime at work, and so forth- you can often lose money that you would otherwise be able to collect through life insurance. So this insurance covers you for that lost income and to some degree for the increased cost of living that comes with it.

Homeowners insurance

Homeowners insurance covers you for any physical damage to your home. However, you might also want to consider additional insurance for theft or fire. In addition, homeowners insurance covers replacement cost for any personal property you have in your home. It does not cover the building itself. That is where renters insurance covers that gap.

Homeowners insurance types can also cover liability for third parties. This is one insurance type that can have a significant impact on your budget. For example, if you are injured in a motor vehicle accident, your auto insurance will pay the repair or replacement cost for your vehicle minus your liability insurance deductible. The liability insurance deductible is the amount you must pay out of your pocket before your insurance provider pays for any claim. Raising your deductible can lower your premiums.

Renters insurance

Renters insurance types generally do not cover the structure of the home. However, there are policies available that provide protection against loss of rental value and reimbursement for fees for storage. When comparing insurance costs, take into account the impact of these policies on your monthly budget. You may need to make some adjustments to your budget to afford the insurance coverage.

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