What Are Insurance Coverages? What Are Its Uses?
It is important to remember that expenses in today’s society can sky rocket. With the increasing cost of medical expenses and health care, it only makes since to have help in covering these costs. The following is a document about insurance coverage’s and which ones are best for you.
Homeowners insurance is needed in the unfortunate case of a fire or theft or any kind of damage to your home. Before purchasing homeowners insurance, it is a good idea to make a checklist of your valuables in your home that the insurance may cover. You can find such a checklist at www.insureuonline.org. The checklist should include valuable items found in every bathroom, dining room, every bedroom, kitchen, din, and don’t forget to include the closets and attic. The checklist should be kept in a safe place away from the home.
Understanding your homeowner’s insurance policy means knowing what the agreements and the conditions of the policy are. Within the policy there are several types of coverage.
how much life cover do i need ?this is the first question that comes to an insurance buyer’s mind. Here is the list of different covers which you can consider according to your need.
These coverage’s include:
ΓÇó Dwelling coverage – Insures your home and any fastened structure such as patio or garage.
ΓÇó Personal property coverage – Insures personal items such as clothing, furniture, and electronics. This is where your checklist comes into play.
ΓÇó Personal liability coverage – Insures you when you or someone else is injured on your property.
ΓÇó Coverage for loss of use or additional living expenses – Insures you in case of relocation due to unlivable conditions at your residence.
ΓÇó Additional coverage’s – Insures anything other than your house or other structures (plant life, landscape)
ΓÇó Medical payments coverage – Insures the medical expenses of injured patrons on your property.
All or just some of these coverage’s may be included in your policy.
Different types of health insurance plans are available based on your current needs, personal circumstances, and financial resources (Kreidler, n.d.). Most health insurance is offered through your employer although individual health plans are available. Insurance through your employer may offer one of three types of plans. These plans are Group plans, personal organization and association plans, and COBRA. A group plan means everyone in your immediate family can be covered. This means your wife/husband, domestic partner, and children can be included in this policy. Keep in mind that not all employer group plans are the same. Professional organization and association plans are for people in certain industries or associations, typically with very aggressive rates. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) companies with 20 or more employees must give these employees their benefits despite being laid off or the reduction of hours. Enrolling in COBRA generally means that you pay for it out of your own pocket.
You should review your life insurance policy about once a year. The reason being is that you choose your policy due to your needs at the time. Over time your needs may change, therefore you will need to change your policy. Always be sure to read your policy very carefully before signing up. If it appears to be too good to be true, then it probably is. Also, you should keep your old policy until your new one starts. Never buy coverage that you don’t fully understand. Ask questions if there is anything that you can’t comprehend. There are two types of life insurance, term and cash value. Term insurance is just what it sounds like; it’s good for a certain term, like one to five years, which guarantees to pay a specific death benefit, typically in increments of $100,000 (Brown, 1993). Cash value insurance is for as long as you want it. Most choose this coverage because it lets people decrease or increase their policy as they see it fit.
There are three types of auto insurance. These are fully comprehensive insurance, liability insurance, and third party insurance. Fully comprehensive insurance covers the operator of the vehicle through accidental damage to the car being driven whether the driver was at fault or not. Even if the other driver was at fault, under fully comprehensive insurance, you are covered. Third party insurance covers only fire and theft and in the event that the driver causes an accident, only the vehicle of the other driver is covered. Liability insurance is what everyone has to have in order to operate a vehicle legally. Liability insurance covers damages caused to the other person’s vehicle in the event of an accident. Driving without this form of insurance can be very costly if caught. Before purchasing auto insurance be sure to compare prices and premiums. The prices depend on several factors. Some of these factors include age, sex, marital status, make and model of the vehicle being insured, state and city you live in, and size of the engine. Make sure you have all of this information handy when purchasing auto insurance.