Tips

Insurance Policies that Everyone Should Have

Insurance isn’t the first topic that comes to mind for the average person. However, without them, all your hardwork in building your wealth will go to waste should something unfortunate such as a car accident happen and you have to bear the costs of your hospital bills. 

In fact, even it’s not just your health that’s there to be covered. There’s also a whole array of different insurance policies to protect all your personal assets. It can be overwhelming to look for the right insurance plan, so there are services like Policy Scout that can shortlist the best plans for your needs. 

In this article, I’ll be sharing some of the most important insurance policies you should have!

Health Insurance

This would be the most obvious one, but folks just aren’t aware of the value of health insurance. If you are working for a company, chances are your employer has hooked you up (and even your family) with some sort of health insurance as part of your work benefits.

However, if you’re self-employed, you bear the responsibility of looking for one. Hospital bills can rack up quickly and many people do get in debt when their health doesn’t go in their favor. In fact, 79 million Americans have trouble paying their hospital bills in 2007!

Health insurance normally covers the cost of doctors and emergency room visits, prescription medication, and routine vaccinations and tests. However, you should always read the fine print of the policy and make sure it covers what you need, as dental and eye care is usually excluded in these policies.

Homeowners/ Rental Insurance

Whether you own a home or are currently renting a place, there is an option for you!

Generally, homeowner’s insurance covers the costs to replace or repair any damages in or to the house structure due to accidents and theft. Keep in mind that you may need to pay for a premium for coverage against natural disasters such as floods and earthquakes.

If you have valuable items such as jewelry, cameras, and tv’s, these too can be covered in any event a theft occurs. 

A renter’s insurance is similar to a homeowner’s insurance, except that it usually doesn’t cover the structural aspects of the property and is usually much cheaper to get.

Car Insurance

By law, almost every state in America requires you to have liability insurance if you own a car. This means that if you’re responsible for causing the accident, your insurance policy can take care of the repairs and medical bills of the occupants in the other car. 

It is advised to have at least $500,000 of coverage. If your insurance policy covers only a small amount, you’re left to pay for the remaining damages to the other party. Worst case scenario, you may even need to sell your property to cover the remaining costs! 

Optional car insurance policies include:

  1. Comprehensive coverage

For covering repairs and losses due to bad weather and thefts.

  1. Collision coverage

Covering repairs on your behalf when you get into a collision with another vehicle or person on the road.