For the past couple of weeks, we have gone into detail about insurance. The last two articles discussed Health Insurance, Supplementary Insurance, and Life Insurance. Today, we will run down a few other types of insurance that are often overlooked, but should definitely be considered.
Renters Insurance covers all of the items in your apartment. If there is ever a fire or a leak or a flood your items could be damaged or even destroyed. These types of events are not limited to natural disasters. A pipe leak or any other maintenance failure can also occur and do major damage. Renters insurance also covers theft. Renters insurance is often inexpensive, averaging less than $20 a month. Many feel that if they don’t own the property, they don’t need insurance but that is the furthest from the truth. You still own all of your items inside the property and they can be more expensive that you expect to replace. It’s something no renter should go without.
Homeowners Insurance is a given. If you’ve purchased a home, you own the property and the items in it. In most cases, the bank or mortgage company will require the homeowner to have property insurance. But even if you now own your home fully and no lender is involved, homeowner’s insurance is a must.
Flood Insurance may be included in you renters or property insurance policies, but it is good to ask specifically. Some insurance agencies craftily do not include flood insurance. Or their definition of a “flood” may be different. Especially if you live in a flood zone. Please confirm with your insurance company the exact circumstances that you are covered for. In some cases, you may need to purchase flood insurance separately.
Fire Insurance is another clause that may need to be added separately. There are several types of fire insurance policies. You will want to confirm that your policy is a comprehensive policy that covers all types of fires. How many types of fires are there? Explosion, lightening, burglary, riots, and the list goes on. For the average consumer, we often feel if we have insurance we are covered. But again, some insurance companies are crafty and purposely write their policies in a way that will not require them to pay out. It’s in their benefit to collect all the premiums and pay out as little as possible. A comprehensive policy will cover all types of fires. It’s important to make sure that is the type of possible you have.
Disability Insurance is basically paycheck protection in the event that you are injured or ill and unable to work. We all have a measure of disability insurance built in with the state. A small amount is taken from our paycheck each pay period for disability insurance. The challenge is it may take months for an injured individual to receive State disability. If you already have a nice emergency fund built up then this type of insurance is not necessary (unless you just want extra protection).
Business Insurance is a good idea for all who are self-employed, but especially for those with a physical location. Business insurance will cover damages to your property and also claims against you as the business owner. Similar to the other insurance policies listed above, its important make sure what you are covered for is clearly explained in writing.
Auto Insurance is something we all already have if we own a vehicle. We’re still mentioning it to make sure we understand our coverage and deductibles. Our circumstances change over time and a lot has changed for most of us during COVID-19. Now is a good time to review your policies. If you are now working from home permanently update this with your insurance carrier because your monthly premium will decrease.
Thank you for sticking around during this mini-series. With the many types of insurance out there it’s easy to get overwhelmed with all the jargon and terms. Now you have a baseline to springboard from and craft the package that right for you. Go online and print a summary of your current policies and review them in light of everything we discussed. Write out a list of questions and then call your insurance provider. Get clarity, then create a new plan for your insurance coverage. As always, you got this!
Until next time,
Crystal
Crystal Chantel is an accountant with well over a decade of experience in tax, finance, audit and accounting in New York and Florida. Each week in Money Talks, she’ll share her advice to help individuals to navigate their financial challenges! Looking for more advice? Check out her blog where she offers personalized business, tax, and self-care tips for Ma Bohne Readers! Just click the link above and send in your questions!