Understanding Personal Insurance
This section includes a general overview of the types of insurance coverage that an individual might need in life, with links to more detailed explanations of the various types of insurance.
Individually we buy insurance to reduce risk and to protect those things we value. Purchasing insurance reduces what we might have to pay if we were involved in an accident to a predictable regular payment. By reducing potential losses to a predicable amount, insurance makes it possible to plan for the future with some peace of mind.
It is possible to purchase insurance to offset almost any foreseeable risk. Account Managers are available to answer any question you might have and can help locate insurance appropriate for your circumstances.
All policies are subject to the terms and underwriting guidelines established by the carrier. It is essential that any person buying an insurance policy thoroughly understand the provisions of that policy.
Insurance types
Life Insurance
Life insurance can protect your loved ones in the event of your death. Life insurance is important if you are married and even more important if you have children. There are several common types of life insurance, including some which provide investment options.
Health Insurance
Health coverage protects you in case of sickness or injury. Many people receive subsidized health benefits through their employer, but coverage can also be purchased as an individual.
Long-Term Care Insurance
Long-Term Care insurance is designed to help pay for nursing home care or home health care expenses. This fast growing type of insurance can protect you and your assets against the high cost of long-term care.
Disability Insurance
This is probably the most overlooked form of insurance for working-aged people. Disability coverage replaces a portion of your income when you can't work because of illness or injury. Most policies replace 60% to 80% of your income. (You also may receive income from Social Security for certain disabilities, or from Workers Compensation if you are injured on the job.) If your employer provides a 60% disability policy, you might want to consider a supplemental policy covering 40% of your income.
Auto Insurance
Auto insurance insures your vehicle for loss or repairs after an accident or loss, and provides a financial safety net that can help you offset the cost of bodily injuries to yourself or others. It also usually covers lost wages due to injury and lawsuits brought against you as the result of an accident. Most states require basic liability coverage and then it is up to you to you determine the additional insurance you need for peace of mind.
Homeowners Insurance
Homeowners coverage protects the significant investment you have in your home. It provides compensation for damages to your home and its contents, and it may protect you from financial liability if someone is injured on your property. The extent and amount of coverage needed depends on your situation. It is wise to insure your home for 100% of its replacement cost.
Homeowners policies have limits for coverage of jewelry, firearms, art & collectables, etc. If you have a significant investment in one of these areas, you may wish to purchase supplemental coverage.
Condominium Insurance
Condominium or Co-op projects generally have a Master Insurance policy that protects the shared property, including the structure of the homes. Condominium coverage usually provides protection for those personal items not covered by the Master Policy, including your possessions, furnishings, and non-shared property.
Renters Insurance
While your landlord probably has insurance coverage for the building in which you live, this coverage does not extend to protect your personal possessions. Renters insurance provides protection for your furniture and personal possessions - at home or away from home. A renters policy can protect you against theft, damage from hazards such as fire, lightning, windstorm, hail, explosion, smoke, vandalism, and plumbing damage.
Flood Insurance
Starting over after the catastrophic loss caused by a flood will never be easy, but Flood Insurance helps. Most homeowners policies exclude coverage for damage caused by floods, so if you live in an area that is at risk, you should seriously consider Flood Insurance.
Valuable Property Insurance
While homeowners insurance provides protection for your personal possessions, all homeowners policies have limits on coverage and special exclusions may apply to specific items. If you have a significant investment in jewelry, art and other collectibles, or firearms, you may want to consider additional protection of these items either by requesting a special rider on your homeowners policy or by purchasing supplemental insurance.
Excess Liability Insurance
Often referred to as an umbrella policy, excess liability is the additional protection you need in case a judgment against you exceeds the liability limits of your existing auto or homeowners policy. Excess liability coverage increases your personal liability limits by adding protection to your current auto or homeowners policies.
Home Business Insurance
If you work out of your home or have a home based business, your homeowners policy may not cover your business equipment, inventory or provide adequate liability insurance. Home Business Insurance helps protect the valuable assets that your homeowners policy omits.
