Essential Insurance Policies Everyone Should Have

There’s no denying insurance is necessary to protect against unforeseen events. A single accident or illness can quickly wipe out your savings or even force you into bankruptcy, so it’s essential to have adequate coverage in place.

Health Insurance

Thanks to the Affordable Care Act, all qualified health insurance plans must now cover ten essential benefits, such as doctor visits, hospitalizations, prescriptions, and mental healthcare. These plans also can’t impose lifetime or annual benefit limits.

But you should always read the policy document carefully before deciding. If you’re considering short-term insurance, limited-benefit plans, accident supplements, medical discount plans, or health care sharing ministry plans, ensure you understand what you’re getting into. 

Homeowners Insurance

Mountain Insurance Denver Insurance Agency provides homeowners insurance financial protection for consumers’ most significant investments. It protects them from property damage and liability lawsuits arising from injuries or other damages to others in their home. Furthermore, a lot of mortgage lenders stipulate that having homeowners insurance is a need for house ownership.

The policy typically includes the following:

Dwelling coverage, also known as hazard insurance, pays to repair or rebuild a residence if it’s damaged or destroyed by a covered peril like fire or windstorm. It can also compensate for structures that aren’t physically attached to the house, such as a fence, detached garage, or tool shed, if a covered risk destroys them.

Personal property coverage, which covers your belongings inside your home (after deducting their fair market value), is also included in most policies. Lastly, a homeowners policy typically provides liability coverage that pays for legal fees or compensation if someone is hurt on your property or if they sue you because of an accident you caused on your property.

Renters Insurance

Many renters assume that their landlords’ insurance policies cover anything they own in their rented home or apartment, but this is usually untrue. The tenants are responsible for getting their property coverage through renters insurance.

Standard renters insurance protects the contents of a tenant’s home or apartment from damage caused by fire, lightning, theft, and vandalism. It also covers belongings lost or stolen outside the house and some natural disasters, such as earthquakes and flooding. But it excludes items covered by a separate specialized policy or those damaged due to a pet’s actions, and personal liability covers legal fees and settlement awards if someone is injured in the home.

Another valuable component of renters insurance is additional living expenses, which cover staying in a hotel or finding other temporary accommodations after a peril such as a fire or flood. This coverage typically lasts for about 30 days.