Liability Insurance is protection for what matters most. One of the ways that we ensure financial security in the face of loss is liability insurance. That loss can come in the form of a car accident, hail damage, an illness or death. There are various types of insurance for the different types of loss that we can experience. Let’s go through 8 of the most common types of insurance that will protect most aspects have you and your family’s assets.
While there are many types of insurance from the basic consumer products that we are all familiar with to exotic insurance policies that cover unusual assets. This will be devoted to basic consumer products that are the most common and useful for the most individuals.
Here are the most common and useful types of insurance to protect you and your family from liability:
- Auto Insurance
- Homeowners/ Renters Insurance
- Umbrella Policy
Auto insurance is probably the most common type of insurance because every driver should have it in some form or another. There are 3 types of auto insurance.
- Liability coverage covers the cost of injury or property damage If the accident is your responsibility. Most states have a minimum coverage amount which varies by state.
- Collision coverage covers the cost of repair or replacement at your vehicle if it is damaged in wreck.
- Comprehensive coverage covers the cost if losses sustained from incidents other than a wreck.
With so many options for coverage and companies that are willing to compete for your business there is no reason to be without auto insurance. The risk of being uninsured is substantial considering even a small accident can be thousands of dollars in damages. There is also no law in most states took care of liability coverage. One additional type of coverage is uninsured motorist, and this will protect against a hit and run or a wreck is the other drivers responsibility and they are without coverage.
There are some great guides to help you make the purchase. Also, there are many websites that allow you to get multiple quotes very quickly. The best advice is to shop around because each company rates driving experience, area, driving habits and vehicle type slightly different. Those differences can have a big impact on your rate. adjusting the amount of coverage, we also have a significant impact on the premiums.
Homeowner’s insurance and renter’s insurance are covered together because they protect against similar types of risk. Homeowner’s insurance against the cost associated with damage to the interior or the exterior of your house due to a covered event. The interior often covers the contents of the home as well such as clothing, furniture, appliances and other items. Personal liability for damages and injuries touched by you or your family are also part of homeowner’s insurance. the threat of lawsuits filed by others in the event of injury or property damage makes personal liability a necessity and protection for what matters most. There are 3 levels of coverage.
- Actual cash value: covers the value of the home what’s the value of your belongings after deducting depreciation or the current worth.
- Guaranteed replacement cost: covers the cost of replacing the home and belongings at the current cost and is generally 25% higher than actual cash value.
- Replacement cost: this is the actual cash value without the deduction for depreciation, so it will provide reimbursement up to the original value.
There are many exclusions for most policies which include acts of God and acts of war. Additionally, many policies will require specific riders for hurricanes, floods and earthquakes. Those riders will have an impact on the cost of coverage. Other factors that will have an impact on the cost of coverage include the neighborhood, crime rate, building materials and coverage provider. Each provider evaluates the home slightly different and the factors associated with the quote so shopping around bill is crucial for the best rate.
Umbrella insurance like the name implies covers liabilities in excess of auto and homeowner’s insurance. This could be considered a safeguard against lawsuits that exceed the normal rate of standard insurance. While it is not required It is common for People who own the property, have significant savings or assets, own items that can lead to injury such as pools or trampolines, engage in activities with the increased risk such as coaching or landlord, or being worried about liability claims outside of US. Umbrella insurance is relatively inexpensive for the coverage limits and will provide significant protection against your personal assets and protection for what matters most.