From tiny to grandiose life’s little surprises are wonderful! That is of course unless they involve insurance. Chances are, if a little surprise involves insurance it is also going to involve stress and strain, and if you do not have the right coverage then serious financial hardship. There are a few ways to ensure that you do not experience the latter. The most common way is to be certain that you not only have insurance, but you have the correct insurance.
There are a multitude of different genres of insurance that someone can have. They will range from auto insurance to life insurance to renters insurance; and everywhere in between. Figuratively, there are approximately 8 to 10 different genres of insurance that a person can hold on themselves, their homes or residences, and their vehicles. This article is going to focus on the three most popular genres; health insurance, residential insurance, and auto insurance. Remember, that all of the following information may vary depending on the state that you reside in. So, be certain to verify your state requirements to avoid any and all confusion.
Health Insurance
Obtaining health insurance can be very tricky and confusing at the same time. Right now in America medical bills are staggering. Quite often individuals delay going to the hospital simply because they cannot afford it. This absolutely should not be happening and it is one of the main reasons why health insurance is becoming more obtainable through your employer. If your employer does offer health insurance, consider obtaining a policy with a high deductible. When you obtain a policy with a high deductible you are ensuring that your monthly health insurance cost will be lower even if you have to pay a higher deductible before the coverage starts.
Investigating a Health Savings Account (HSA) can also be beneficial. This allows you to put away tax-free dollars that can be isolated for any future medical needs. An HSA can also be combined with a high-deductible insurance plan; simultaneously saving you money in the long run.
When considering health insurance it is important to know when the enrollment dates are. Typically enrollment dates are the last two months of the calendar year. However, this is truly dependent on the state that you live in and oftentimes the company that you work for. There will always be exceptions to the rule as far as updating or altering your insurance. The top three exceptions are generally marriage, childbirth, or death.
Residential Insurance
Homeowner insurance is not mandated within any state. It is highly recommended. By owning your home or being under a mortgage or contract you are obligated for any repairs or replacements if there is damage or destruction to your home. That obligation is lightened tremendously by having homeowner insurance. Quite often lenders will require a homeowner to purchase insurance just to alleviate the worry of a homeowner walking away from a mortgage if there is a catastrophe.
There are multiple different types of policies that are written into a person’s homeowners insurance. These are often referred to as being “blanketed” under one main policy. They can include dwelling coverage; which ultimately covers the structural integrity of the home. There is also personal property coverage; which covers your personal belongings that are inside the home. Lastly, and most commonly, is liability coverage; which will pay for any injuries or damage that the homeowner has accidentally caused to someone else.
One important point to remember is that basic residential insurance does not cover damage that is caused by a flood or an earthquake. These are considered natural disasters. However, many insurance companies offer a separate policy in order to cover these natural disasters. You just have to know to ask about them.
Auto Insurance
Not obtaining and maintaining auto insurance is illegal in nearly every state within the United States. There are multiple consequences for driving without insurance. Not only can it be financially draining, but it can also negatively affect your legal ability to continue to drive if you are at fault for any type of vehicular accident and are found to have no auto insurance. There are several different types of auto insurance that you can obtain to ensure you are meeting at least the bare minimum that is required within your state.
One of the most common auto insurance policies is liability coverage. Liability coverage pays for the damage to property or injury to another person that is proven to be your fault. One of the more crucial benefits of liability coverage is the fact that it also pays for your legal counsel if there are judgments or settlements set against you after being sued for an accident.
Having uninsured or under insured coverage on your vehicle is beneficial in multiple ways. This helps cover you, your passengers, and your vehicle if someone comes in contact with your vehicle and they do not have insurance coverage. This addition to an auto insurance policy can also be leveraged to help pay for lost wages while you are recuperating and unable to work.
This article is merely covering three of the most common insurance policies that you should really investigate and implement. Not only to suffice your state law requirements but to ensure that you and your loved ones are covered under any and all circumstances. When a tragedy occurs you want to focus your time and energy in the right direction. Allow your specified agents to handle the insurance needs and you focus on the well-being of yourself and your loved ones.
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