Insurance is not a very fun topic for most people. Many people look at getting insurance with the same light as doing their taxes, balancing their checkbooks, or buying their own grave site. However, things happen. Floods, fires, hurricanes, tornadoes, major health problems, disabilities, sudden death, car accidents, and lawsuits could all happen when you least expect and there’s little you could do to prevent them. You could, however, protect yourself and everything you love by having an insurance policy that’ll minimize your damages. There are five major insurance policies everyone should have:
Homeowner’s insurance policies offer great values because you get a lot of coverage for not that much money. However, you must tailor it to your specific needs. For example, if you live in an area that’s prone to earthquakes or tornadoes you will need to make sure your policy covers those disasters because they usually don’t come standard. All homeowner’s insurance policies cover five major areas:
- Damage to your home and detached structures
- Damage or theft to your household’s personal property regardless of where it happened
- Financial loss due to any of the above occurrences
- Personal liability for injuries and damages that occur regardless of where it happened
- Medical expenses for injured guests regardless of fault
Your vehicle poses the largest threat to you facing legal judgements, injury, death, and property damage. A liability insurance policy will pay financial judgements and medical bills for you, minimizing your overall risk. It’s important to understand that this could mean big dollars. Let’s say you injure a teacher in an auto accident who ends up missing two years of work. She stays in a hospital for two months then a rehabilitation center for the remaining 22 months. All in all, the total damages could be $100,000 in lost wages, $150,000 for pain and suffering, and $125,000 in medical expenses totaling $375,000. Those figures will only increases if you’ve injured a doctor, financial professional, or professional athlete instead.
General Business Liability
If you’re a business owner, the last thing you want is someone slipping and falling everyday on your premises forcing you to pay tens of thousands of dollars each time. General liability insurance will protect your business against:
- Personal injuries
- Medical expenses
- Advertising injuries
Life insurance protects your loved ones from financial hardship once you pass. Life insurance can be used for funeral costs, debts you leave behind, and as a supplemental income for your family.
Disability insurance will protect you when you have a long-term loss of income due to a disability. Without this coverage, you and your family will struggle to pay for housing, living expenses, food, and additional care.
These five coverage areas are essential to protecting your family’s financial stability. Consider speaking with an insurance specialist to build your personal insurance program.
Kandace Heller is a freelance writer in Orlando, Florida. She loves researching, writing and sharing what she learns with others. Informational credit to the Calgary insurance brokers at Thomson Schindle Green Insurance & Financial Services Ltd.