Best Insurors :: Personal Insurance Coverages
Personal Insurance Coverages
Homeowners Insurance: Homeowners' policies are designed to provide financial protection in the event of damage to your home, such as fire or wind damage. Your policy may also protect your personal property, such as furniture that is damaged as a result of a fire, or the theft of electronic equipment. In addition you could also be protected from liability as a result of homeownership, such as a visitor who slips on your property and breaks an arm.
The standard homeowners' policy covers the following:
- The physical structure of your home, permanent structures on your property, and for an additional premium, contents coverage for your personal property;
- Personal liability exposures that arise from being a homeowner;
- Additional costs that you may incur as a result of a covered loss, such as fire to your home that makes your home uninhabitable.
- Endorsements Provide Additional Coverage
You can purchase additional coverages through endorsements to your policy. These coverages may be for items such as jewelry, furs, firearms, gold or silverware. For example, if you were seeking additional protection for your jewelry, you may purchase endorsements that provide:
- Additional coverage for your jewelry beyond the amount covered in a standard policy.
- An increase in the perils insured against, for example, a misplaced piece of jewelry, or a stone that falls out of a setting.
- No deductible before losses for jewelry are covered.
- You may add other coverages to your homeowners' policy to reflect your specific needs.
Flood Insurance: The Federal Flood Disaster Protection Act of 1973 requires that federally regulated lenders determine if real estate to be used to secure a loan is located in a Specially Flood Hazard Area (SFHA). If the property is located in a SFHA area, the borrower must obtain and maintain flood insurance on the property. This is insurance that compensates for physical damage to a property by flood. Flood related damage is typically not covered under standard hazard insurance.
Automobile Insurance: The typical automobile insurance policy consists of several different types of coverage and your policy premium will depend on the types and amounts of coverage you choose.
- Automobile liability insurance covers injuries/deaths and property damage resulting from an accident. This is the most important coverage and is commonly required by law in many states.
- Collision insurance covers damage to your own vehicle in an accident.
- Comprehensive insurance covers damage to your vehicle other than collision, such as fire, flood, break-ins, vandalism or theft, and collisions with animals.
- Uninsured or Underinsured motorist insurance covers you if you are injured in an accident with others whom themselves carry insufficient or no liability insurance.
Life Insurance: Life insurance was originally designed to provide families with financial security in the event of a spouse or parent dying. Although life insurance has expanded to include many additional benefits, this initial purpose remains. Your life insurance policy should provide for your family's two biggest expenses:
- Home mortgage
- Dependent care/education
- Including the cost of your entire mortgage is crucial for your family's financial security. Funding your child's education is a costly endeavor but your life insurance can help cover the expense in the event you are unavailable.
Umbrella Insurance: Excess Liability coverage — often called umbrella — is an important addition to your insurance portfolio. A personal excess policy provides you with additional protection for damages in which you or members of your household may be legally liable.
An umbrella or excess liability policy provides you with additional limits of liability over and above both your homeowners and/or auto liability policies allowing you the peace of mind that your assets may be protected.
