Home, Auto and Life Insurance Basics

Home, Auto and Life Insurance Basics – The world of insurance has more choices than ever today with many choices in products to cover just about anything. And while there is always the danger that you can go crazy and buy too much insurance, you definitely need a plan to protect the things in life that are most dear to you – namely your home, your car and of course your life!
If you have a mortgage, buying insurance on your home is required by the lender. However even if you are lucky enough not to have a mortgage, buying homeowners coverage is something you should still do. Homeowner’s coverage will not only help repair or replace your home in the event of a disaster or fire. It will also help protect you from unforeseen events such as a robbery or if someone experiences a personal injury while in your home.
However, it’s important to note that protection from flooding is not included in a standard homeowners’ policy. Flood insurance is a separate policy that must be obtained through the national flood policy pool of coverage – and your rates will vary widely depending on the flood elevation determination that your house falls into.
Auto coverage is required in most states as a requirement for owning a car. And most people will at least buy the minimum coverage as required by their state. For example, in Louisiana you are required to at least carry 10/20/10 which means in the event of an accident, each person injured would receive a maximum of up to $25,000 with $50,000 allowed per accident. The last number refers to the total coverage per accident for property damage which in this case would be $20,000.
When shopping for auto though, don’t overlook something called “uninsured motorist” coverage. In the event that someone hits you, and they don’t have insurance, you may be facing a situation where you do not have coverage especially if the other party is deemed to be legally responsible.
There are volumes of articles written on the topic of life insurance. The basics, however, are that if you are young and healthy, you have great choices. However the older you get and the more your health deteriorates the harder it is to get life insurance and the more expensive it becomes.
As such there are a lot of decisions to be made about what type of coverage to get and when you should buy it. The best thing to do when buying life insurance is talk with an agent who can help you weigh the factors such as age, health, your income and your future plans.