What Common Insurance Policies Protect Against

Insurance can be such a wide based, confusing topic. There are different policies for homes, cars and other vehicles, health, dental, and other lesser known forms. Insurance is a necessary thing, and in some cases a legal requirement. You need to decide how much of what kind of insurance you need, and afterward you can find out exactly what is covered and what is not.

Beginning with automobile coverage, the first decision is whether you need full coverage or simple liability. If you are driving an old clunker that is probably limping its way to the auto grave yard, then liability insurance is probably the best bet.

You do not want to over cover a vehicle, you will not recoup that added expense if there is a loss. A liability policy will cover another’s vehicle during an accident, as well as any property damages. Medical expenses for the other party will also be covered, up to the amounts specified by the individual policy.

If you have a newer car, or work in certain occupations, then full coverage insurance may be a better bet. Some jobs, including those that involve transporting clients, may require you to carry full coverage.

If you want to get fair replacement value for your car, then you simply must have full coverage insurance. The other coverage amounts are better as well, and there may be some nice added benefits. For instance, some full coverage policies include rental during a repair period, and free towing. Additional benefits can include hotel stays if you are stranded far from home, and meals during that stay. Of course, if the vehicle is financed, then you will be required to carry full coverage insurance until that lien is removed.

Home owners insurance policies can be written to include not only the home itself, but also the belongings inside, and some outside structures.

If you have a home filled with valuable antiques though, you might want to consider having them insured separately, above and beyond the home. An appraisal is done to assess the value of the structure and a list is made of the other items to be covered and the policy written from there. Certain things are not generally covered, however, so make sure that you know what is and is not included. Usually flood damages are not covered by the homeowners policy and must be purchased separately.

If you make additions or changes to your home which increase value, then call your insurance agent to be sure you still have enough coverage.

Health insurance is probably the one thing that most people need yet do not have, and the one that can be the trickiest to understand. The options that are available can be overwhelming, especially when they are presented in the confusing insurance jargon. Insurance offered through an employer may not always be available for instance, and may not be the best choice even when it is.

A private based insurance plan, one that you pay for out of pocket, may make more sense for your own personal situation. Consider your health, your budget and your employment before deciding on insurance needs and then talk to a professional to make the final policy decision. Be aware that certain health policies will not cover all treatments, and most do not cover pre-existing illnesses. Most policies do cover basic illnesses and injuries, as well as medically necessary surgery and medications. Again, consider cost when choosing whether to use your medical insurance to get your medications or the $4 plans that are available in many pharmacies now.

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