Understanding the Different Types of Personal Insurance Coverage

Melissa Matzenbacher-Galan | Jul 13, 2022 | minute read

Why Is Having the Right Personal Insurance Important?

Understanding the Different Types of Personal Insurance CoveragePersonal insurance serves as a financial safety net for you and your family in the event of a loss, claim, or natural disaster, such as a fire, theft, lawsuit, or vehicle accident. The personal insurance policy is a legal contract between you and your insurance provider.

When you file a claim for a loss covered by your policy, insurance pays you, or a chosen recipient, according to the terms of your policy.

Protecting your most valuable assets is a vital part of developing a sound personal financial strategy. The correct insurance coverage may go a long way toward ensuring that your earnings and valuables are protected. We will go through the personal insurance policies you should not be without.

The Benefits of Personal Insurance

  1. Protects your personal assets
  2. Provides peace of mind
  3. It helps you financially manage uncertainty
  4. Allows you to enjoy financial security
  5. Provides legal help for covered claims and litigation

Who Needs Personal Insurance?

Homeowners. Your lender will need you to buy homeowners insurance if you have a mortgage. Even if you do not have a mortgage, you should protect your investment by purchasing homeowner insurance.

Drivers. Auto insurance is required by law, so if you own any vehicle, you need auto insurance.

Anyone with assets. If you have any assets, retirement accounts, or own any property, it is a good idea to have personal insurance.

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What Types of Personal Policies Are Available?

There are many distinct types of personal insurance policies that are offered by hundreds of personal insurance insurers, such as:

  • Home, Condo, Renters, and Auto Insurance
  • RV, Motorcycle, ATV, and Boat Insurance
  • Life insurance
  • Wedding Insurance
  • Travel Insurance
  • Personal Umbrella Insurance
  • Health and Disability Insurance

Knowing what type of personal insurance you need can be daunting. That’s why having an independent agent guiding you through the process can reduce your stress, save time, and provide peace of mind knowing that you have the right insurance that meets your individual needs.

Different Types of Personal Insurance Coverage

Home, Renters, and Condo Insurance

If your home is destroyed by fire, storms, hail, natural catastrophes, or vandalism, your homeowner’s insurance will cover the cost of repairs or even rebuilding. A homeowner’s policy also protects the contents of your home, which might be just as valuable as your house.

Furniture and other decor, appliances, electronics, apparel, sporting goods, children’s toys, and housewares are included. Renters and condominium insurance do not cover structures, just personal property.

A specific amount of liability coverage is included in your policy. If someone is injured or hurt on your property and successfully sues you for damages, this protects you and your personal assets. Otherwise, it is far too easy to lose everything in the event of a slip and fall or a dog bite.

RV, Motorcycle, ATV, and Boat Insurance

With specialized coverages, you will get the insurance you want and the protection you deserve, whether you have a four-wheeler, RV, motorcycle, boat, jet ski, or golf cart.

Almost any type of recreational vehicle can be hazardous, and sometimes mishaps are unavoidable when utilizing them. It is critical to take precautions to safeguard yourself and your important assets. To do so, make sure you have enough insurance coverage.

Life Insurance

Life insurance pays a financial benefit to a descendant’s family or another selected beneficiary and may give income to the insured person’s family as well as funds to cover burial and other final expenditures. Funds can be used to pay ongoing expenses, college, and other obligations.

Wedding Insurance

Wedding insurance safeguards a couple’s investment against unforeseen events. It covers anything from wardrobe malfunctions to natural disasters, among many other things that can go wrong, and then reimburses the costs.

Travel Insurance

A big concern is how your health insurance applies when you travel. With all the changes in healthcare, you may need special trip medical insurance. If you are traveling abroad, your health insurance may not provide any coverage.

  1. Trip cancellation coverage reimburses you for pre-paid, non-refundable expenses if you need to cancel your trip before you depart.
  2. Medical expenses while traveling abroad.
  3. Medical expenses while on a cruise. For cruises, your health insurance from home may not cover you if you are traveling on a foreign-flagged ship.
  4. Emergency evacuations.
  5. 24/7 phone assistance.

Long Term Care Insurance

Long-term care insurance covers the expense of care over an extended length of time. It provides coverage for services that are not covered by health insurance, Medicare, or Medicaid. Individuals who require long-term care are typically not sick in the traditional sense but unable to do basic daily functions like clothing, bathing, eating, toileting, continence, transferring and walking.

Personal Umbrella Insurance

A Personal Umbrella Policy provides additional liability insurance protection over and beyond that provided by most primary liability policies. Today, $1 million-plus judgments are not uncommon.

The personal umbrella policy can provide you, your spouse, and any children living with you with $1 million or more in liability insurance protection for insured losses, depending on the liability insurance limits you choose.

Health and Disability Insurance

The Affordable Care Act puts consumers back in charge of their health care. Under the law, a new “Patient’s Bill of Rights” gives the American people the stability and flexibility they need to make informed choices about their health.

If you become too ill or disabled to work, disability insurance offers a portion of your income to help you meet your bills. Disability affects a larger number of people than you would realize. In fact, illnesses such as heart disease and arthritis cause more disabilities than injuries, and Workman’s Compensation does not cover most disabilities.

In Conclusion

We have identified several personal insurance products that everyone should consider. Personal insurance products are designed to protect you and your family at a reasonable cost. These products vary regarding coverage, terms, conditions, and prices. Work with your agent to determine which coverages you may need.

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Leap | Carpenter | Kemps Insurance Agency Can Help

After family, the roof over your head and the wheels that get you where you’re going are among the more important possessions in your life. Whether you live in a house, condo or mobile home, and whether you drive a car, truck or motorcycle, Leap | Carpenter | Kemps Insurance Agency will get you the policies you need.

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About The Author

Melissa specializes in auto insurance, flood insurance, homeowners insurance, special event insurance, renters insurance, and watercraft insurance. She prides herself on knowing our markets inside and out.

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