6 Different Types of Insurance Coverage You Should Have
Did you know only 39 percent of Americans have enough to cover an emergency that costs 1000 dollars? Protect yourself from health or legal problems by getting insurance coverage. If you want to learn about the different kinds of insurance to get, we can help.
In this guide, we’ll go over the insurance coverage you should consider.
Want to learn more? Keep reading.
1. Renters or Homeowners Insurance
A homeowners policy should have extended dwelling coverage. The extended dwelling coverage will add extra protection beyond your policy limits.
Insurance will rebuild or replace your property even if the costs go beyond the policy’s coverage.
Yet, there’s a limit to what they will pay. Usually, it’s 25 percent above the amount insured unless you get more coverage.
If your home’s value is higher, consider getting extended dwelling coverage.
Talk to your agent about the policy. Some policies will provide flood insurance. Flood insurance’s excluded from most policies, and it’s different from water backup protection.
Earthquake coverage may not get included, depending on where you live. Are you a renter? Consider getting insurance. Insurance can help protect you as a renter in the event of a fire, burglary, or flood.
Talk to an agent who will help you understand the different insurance options.
2. Consider Getting Auto Insurance
It would help if you didn’t drive around without insurance. It’s not legal, and you could end up in a legal jam.
The average loss per claim on vehicles is around 5000 dollars. If you had to pay that amount out of pocket, would you be able to?
Make sure you get auto insurance. You could get a few different kinds of coverage.
Some people will choose liability coverage. If the accident was your fault, the insurance would cover the costs of property damage or injuries.
A lot of states require people to have this amount of coverage at a minimum. Talk to your insurance agent to understand your state’s requirements.
Collision coverage will cover the price to repair or even replace your vehicle. This will cover you if your vehicle gets destroyed or damaged in a wreck.
Comprehensive coverage will cover losses not caused by a wreck. In the event of a fire, flood, or theft, you’ll get protected.
Talk to a reputable auto insurance agent. They will help you figure out the right level of protection.
3. What About an Umbrella Policy?
An umbrella policies a kind of insurance that will add another layer of protection. This coverage goes beyond the limits of your auto insurance or homeowners insurance.
If you’re the one at fault for a multiple-vehicle accident, the property damages and bills will add up fast.
Most of the time, it’s beyond what auto insurance will cover. If you get sued for the difference, your home, future wages, or savings could get used.
Protect yourself from this situation. Look at getting a personal liability umbrella policy, and get an umbrella policy for people with a net worth over 500,000.
4. Don’t Forget Health Insurance
Medical debt will contribute to half of the bankruptcies in America. If you aren’t insured, you could become vulnerable to a financial disaster.
An unexpected medical emergency could cost hundreds of thousands of dollars.
Medical insurance costs a lot, but you shouldn’t go without it. Get a high-deductible health insurance plan along with a Health Savings Account.
You will be more responsible for your up-front healthcare costs. But you will end up paying a smaller premium each month.
A high-deductible health plan will qualify you to open an HSA. Talk to an independent insurance agent about these options.
An HSA will provide you with a tax deduction, and you can deduct HSA contributions from your business income or gross pay.
You can look at tax-free growth, as well. The funds you add to your HSA will grow tax-free.
Use the money on qualified medical expenses. These include vision and dental costs and health insurance deductibles.
Some companies will provide employees with high-deductible health plans. They include it with HSA accounts along with traditional health insurance plans.
Look at your options. See if a high deductible plan could save you money.
5. Long Term Disability Insurance
Long-term disability insurance will protect you from a loss of income if you can’t work for an extended period.
A permanent disability could end up putting you out of work. Don’t skimp on long-term disability insurance.
If you’re in your prime years to earn wages, you might want to get this insurance. A permanent disability could affect your future.
A lot of companies will offer long-term disability insurance. Find short-term disability insurance to fill in income gaps caused by injury or illness. You could skip this insurance if you have a well-funded emergency fund.
6. Different Business Insurance Needs
Depending on where you work, you might need to look into specific insurance to protect yourself.
For example, roofing contractors will need special insurance coverage to protect them. If they get injured, they will have help with medical bills. Check out this roofing contractor insurance.
Make sure your business has adequate insurance. Protect you and your employees from any legal issues.
What Insurance Coverage Do You Need?
We hope this guide on the different kinds of insurance coverage was helpful. Consider what kind of insurance you will need for you and your family. Work with an insurance agent who will help guide you.
Are you looking for more life tips? Check out our insightful guides on the blog today.