In a hectic world where nothing is ever guaranteed, the insurance game is one that’s well worth playing. We’ve all got a lot of stuff — much of it pretty expensive to boot — and we want to make sure that our resources stay safe for as long as we need them. These days, you can insure just about anything, whether it’s a new video game console or your next package to mom. What else can we put a safety net under in case a storm unexpectedly blows our way? We already know the importance of having a policy on your car, but what about the other significant assets in our life? What types of insurance can you add to your existing coverage?
We created a list of the most popular types of insurance coverage you can add to your existing insurance policy. Take a look below:
A typical homeowners insurance policy can cover two things: damage to your house resulting from certain accidents and the loss of property. That first umbrella extends to the destruction caused by fire, hail, explosions (from, say, a gas leak), and water damage. The second refers to burglaries and the costs of living elsewhere while your home is being repaired or rebuilt.
Homeowners insurance can also be used to cover legal liability should you or your family (including pets!) hurt other people or damage their property, both in and away from your home.
It’s important to note that the majority of basic home insurance policies do not cover water damage caused by flooding. That’s because not enough people are willing to pay for the coverage to make it profitable for most insurance companies. Flood insurance is typically a separate cost from homeowners insurance, and what exactly constitutes “flooding” (a leaky pipe in the basement versus hurricane damage, for instance) will vary.
For recreational and specialty vehicles beyond your standard car or truck, you’ll need separate policies. For the most part, they work the same as auto insurance policies: you pay a premium for a set of liability limits that come with deductibles and can cover things like collision damage, property damage, bodily injuries, and comprehensive compensation. However, these policies come with some additional tweaks to the usual formula:
Whether or not you need boat insurance will depend on a variety of factors, including where you intend to dock your vessel and if you’ve taken out a loan to purchase it. The bigger and better the boat — its market value, motor size, age — and the riskier your use of it is (high-speed travel versus quiet fishing), the more you’ll need to pay for coverage. Your policy may or may not cover you for damage caused by a blown engine, hitting rocks, or storms, and may or may not include personal possessions lost to theft or passengers pulled behind the boat.
Motorcycle insurance varies widely in cost, but is generally higher than policies on cars, since they are more difficult to see on the road and come with a higher risk of severe injury, and theft. It may or may not cover accidents occurring during a race, timed event, or speed test.
RV insurance is particularly expensive because motorhomes are essentially a cross between a home and SUV; therefore, they need to deal with both sides: things like liability and collision coverage for the “car” half, and personal effect and physical damage coverage for the “house” half. There are three classes of coverage for them — A, B, and C — with A being the most expensive and required for the largest models, and C being the cheapest for the smallest ones.
Renters insurance includes several different coverages designed to protect you and your belongings while you’re renting out an apartment or home. It’s required by just about every rental agency, who will usually offer their own policy or allow you to get a more comprehensive plan from a third party. Types of coverage include:
Personal property, which pays to repair or replace damaged and lost belongings like clothing, furniture, and electronics.
Liability, which pays for other people’s property or medical bills should you be held responsible for causing damage to the location or injuring a guest.
Additional living expenses, which covers extra costs that you incur if you’re forced to live elsewhere temporarily when your home becomes uninhabitable.
Also known as “business liability insurance,” general liability policies are a necessity for any company. They help cover medical expenses and attorney fees stemming from injuries and property damage that your business can be held responsible for: as in, incidents that are caused by your products, services, and/or operations. It’s not entirely comprehensive, however, and doesn’t extend to employee injuries, auto accidents, punitive damages, quality, or professional mistakes.
To end our list, let’s take a quick peek at the most specialized kind of insurance: bond insurance. Also known as “financial guaranty insurance,” it’s purchased by bond issuers to guarantee repayment of the principal and related interest payments to bondholders in the event of default. Issuers will use it to better their credit rating to reduce the amount of interest that they need to pay.
Now that we’ve broken down some of the major types of insurance policies, it’s up to you to decide what, if any, you may need to protect your assets. Many companies offer more than just one of them and may give you a discount for bundling multiple types together, so you’ll likely be able to add them to an existing contract, but this isn’t a necessity. As with anything, variety is your friend! Shop around, compare and contrast quotes, and mix and match what offers work best for you. Ultimately, it’s your budget and peace of mind that’s most important.
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