The following blog post is by John Moran. If you’d like to submit a guest post to Money Q&A like this one about the types of insurance, check out how here.
Accidents happen. We have insurance policies to protect aspects of our lives such as our health, property, automobiles, loved ones, and pets.
Suppose our precious possessions become damaged, or ourselves or those close to us become sick. In that case, we can be significantly out of pocket and require an insurance policy to help us with the expense of repairing or replacing an item or dealing with medical bills or the loss of income.
If you wish to protect yourself against financial ruin, here are 7 types of insurance you should consider signing up for.
Our home is probably the most expensive item we own, so you must take out a home insurance policy to protect you financially if your home or its contents become damaged.
Building insurance covers you for any damage inflicted to the bricks and mortar of your home by floods, fire, or storms. High winds can cause a tree to fall through your roof, while flooding can rot your property’s foundations, walls, and floors. Some policies cover accidental damage to your home, such as drilling through a water pipe or putting a foot through the ceiling.
A contents policy ensures you will be financially compensated if you lose valuable belongings through a burglary or if they are damaged by accident. If you are unsure what level of cover you require or which possessions you should insure, you should look at up-to-date insurance news websites or contact an agent in your area.
When traveling abroad on holiday, to visit friends, or for work, it is advisable to take out travel insurance to protect you from risks associated with travel.
If your flights are delayed, canceled, or your luggage gets lost, travel insurance will compensate you financially for the inconvenience and loss of money. Sometimes the worst can happen, and you fall ill while abroad or injure yourself. Without travel insurance, you would have to pay substantial medical bills and deal with the loss of your income.
Renters insurance was developed for tenants who rent a property. It is available to people who rent or sublet an apartment, duplex, condominium, house, studio, loft, or townhouse.
The cost to repair belongings or replace valuable belongings such as electronics, furniture and clothing is covered by renter’s insurance, as are costs incurred from you having to find alternative accommodation if the home you rent is damaged.
If a guest has an accident when visiting you and requires medical attention, this type of insurance will cover their medical bills. Other public liability issues such as you damaging the rental property by accident will be covered by renter’s insurance.
If you have a partner or dependents, taking out a life insurance policy is incredibly beneficial.
A life insurance policy will help your loved ones financially when you die. If you have a mortgage, loans, or any other outstanding payments, the policy will settle these debts and hopefully leave a good amount of money for your family.
Even if you don’t have any dependents, it is beneficial to take out life insurance because it will cover your funeral costs.
Nobody knows if and when illness or injury can strike. In the USA, people are required to pay for any medical service they receive, such as routine checkups, operations, routine screening, and vaccinations. Health insurance is probably the most vital insurance policy to take out because paying out for a large operation or ongoing medical treatment can lead to bankruptcy for some.
Cars cost a lot of money, and for many of us, they are our most valuable possession, so we should do what we can to ensure that we are not left financially devastated if they are damaged. A car insurance policy will cover us financially if we are involved in an accident, and our car is damaged through our own fault or by another party. The policy will pay for the vehicle to be fixed or replaced. Car insurance is compulsory in many countries.
Almost one in four USA citizens has a disability that impacts major life events.
Suppose you have an injury that leaves you disabled and unable to work – disability insurance will reimburse you for lost income. It covers partial and full disability for a temporary period or permanently. However, if the injured person needs medical attention and long-term care, a disability insurance policy will not cover this.
If you wish to reduce stress and financial strife in your life, consider taking out some insurance policies from reputable insurance brokers.