Insurance: there’s a different kind for every color under the sun, and it can sometimes be overwhelming to try to figure out what you need, and what you don’t. Here’s the basic question you need to ask yourself:
What would be difficult to replace if it was lost/stolen/destroyed today?
Start big, and work your way down from there. Your house and car are good places to start. Then think of other purchases that would be difficult to replace. How about your (or your spouse’s) engagement ring?
What about less tangible things, like your health, or your ability to work and take care of yourself. What about your income for loved ones that would survive you in the event of your death. What about loss of savings due to a lawsuit?
To help you sort out which kinds of insurance you do and don’t need, in the coming weeks we will be featuring a blog series highlighting different types of insurance, what they do and don’t cover, and whether or not you need them. So stay tuned!
In the meantime, below is an overview of types of insurance and what they cover:
Homeowner’s: covers your damage to your home and property, and often includes coverage for injuries to non-residents who are injured on your property. Homeowner’s policies can often include coverage for special high-value items (like engagement rings). Talk to your insurance agent for details.
Renter’s: covers your belongings located within a rental property, and damage to the rental property that you may be held liable for.
Auto: liability insurance covers damage caused by your vehicle to the vehicles/property of others, and is required by law in order to register your vehicle. Full coverage auto insurance covers liability, as well as damage to you or your vehicle/property caused by you or a third party, or a force of nature.
Health/Medical: covers costs resulting from major medical events such as hospital stays, and may also cover part of the cost of doctor visits and prescription drugs, as well as procedures like vaccines and lab tests
Life: pays a sum of money to those left behind in the case of the death of the covered individual. The sum can be used for anything, but is often used to help offset funeral costs and loss of income from the death.
Disability: In the event that a covered individual is disabled and cannot work, disability insurance pays out monthly sums to replace part of the loss of income.
Dental: covers routine dental visits, as well as dental procedures, up to a certain amount.
Vision: covers visits to the optometrist, as well as prescription eyewear.
Long Term Care: covers the cost of long-term in-home nursing care or costs incurred from the use of assisted living facilities such as nursing homes.
Accident: provides extra coverage in the event of an accident, such as costs for emergency room visits, tests, and treatments that your regular health insurance doesn’t cover, as well as travel and lodging costs.
Cancer: provides extra coverage for doctor visits, hospital stays, and treatments resulting from cancerous illness.
Personal Umbrella Coverage: provides extra coverage beyond homeowners and auto insurance for liability claims and lawsuits.
RV: covers damage to (or caused by) your camper or motorhome and any trailers being pulled by the covered RV, as well as its drivers and passengers.
Motorcycle: like auto insurance, motorcycle insurance covers damage to (or caused by) your motorcycle and its drivers and passengers.
Still have questions about which insurance you do and don’t need? Call or email us, and we’ll be glad to help you figure it out!
