Navigating the waters of buying insurance can be difficult. What is the difference between home and flood insurance? Do you need RV or auto insurance?
What Types Of Insurance Do I Need?
It can be tough to discern whether your policy offers adequate insurance coverage, especially when insurers so often hide what they do not cover in the fine print, and you end up with more questions than you had before.
Here are the different types of insurance, along with what you need to know so you can make informed decisions when it comes to your insurance.
Homeowners are recommended to purchase dwelling coverage that at least covers the costs of rebuilding the entire dwelling itself, also known as your replacement cost coverage.
If you have something legally classified as an attractive nuisance (e.g. play sets, pets, pools, etc.) that might entice others to come onto your property, you are at an increased risk of being liable for someone else’s injuries. Since medical and legal fees can be extremely costly, liability coverage is often recommended if you have attractive nuisances on your property.
On top of dwelling and liability coverage, home insurance can also include coverage for loss of use, personal property, other structures, and medical payments.
Loss of use is a policy that can help you with additional living expenses in case your dwelling has become unlivable and you need to rent a different home or hotel room in the interim. Home insurance can also be necessary for families in need of therapy services, such as autism therapy. For example, families with kids on the autism spectrum disorder might need insurance coverage for behavior therapy. Many insurance providers cover most costs related to therapy for autism.
Landlord insurance is important for property owners who rent or lease their properties to others. It can provide you with financial protection against loss in case the property is damaged by a covered peril and against liability claims and lawsuits.
Like home insurance, it is usually a good idea to ensure your landlord insurance policy has adequate coverage to rebuild the structure back to its original condition in the event of a total loss. In addition, landlord insurance does not cover flood risks and damages, so it is advisable to obtain flood insurance on top of landlord insurance if your property is exposed to flood risks.
In most states, landlords can mandate their tenants to secure renter's insurance for an additional level of financial protection for all parties involved. While landlord insurance is not required by state law, lenders will often require it for properties that they choose to finance.
Also called condo insurance, condominium owners insurance financially protects you and your unit from covered losses, which can vary considerably from policy to policy.
Since mortgage lenders and HOA organizations tend to expect you to have a policy that covers around 20% of your property’s appraisal value, you might need to purchase condo insurance even though it is not always required by state law.
Condo insurance typically covers you financially in case of listed perils: fire and lightning, windstorms and hail, theft and vandalism, as well as ice, snow, and sleet damages. Depending on your needs, you might also want a policy to protect yourself against personal injury and liability claims.
The good news is that you may be eligible for condo insurance policy discounts, but note that condo insurance does not usually provide coverage for floods, property of a renting tenant, or a motorized vehicle.
If you are a tenant who rents a property to live in, renters insurance might be very important for you.
It can protect you against covered financial losses, such as damage or theft to your personal property. If someone is injured while on your property, it can also protect you from liability expenses. Note that renters insurance only covers personal belongings up to a certain limit, so if you have more high-value possessions such as jewelry, it is advisable to purchase a separate insurance policy for them.
While not required by state law, many landlords or property managers mandate renters insurance for renters as part of the leasing contract.
Floods are the most common type of natural disaster and can cause catastrophic damages.
In case of flood damage, flood insurance can offer you financial compensation. If you are a homeowner living in an area classified as a high-risk flood zone by FEMA, a lender will typically require you to buy and maintain flood insurance.
It is important to note that home insurance usually does not cover any flooding losses or damages, which is why flood insurance is recommended if you live in a flood hazard area zone like Florida, even though the premiums can be more expensive in these locations.
Note that depending on where you live, hurricane damage might not be covered by your flood insurance. As always, it is a good idea to check with an insurance advisor like our team at Worth Insurance so you know you’re getting the coverage you need.
If you or another party sustains damages or injuries while boating, boat insurance can provide you with financial protection for covered losses, up to the coverage limits.
Lenders, marina facilities, and states can all require watercraft owners to carry the right type of insurance for their vessels. If you own an expensive yacht, it can be even more important to secure a policy with higher insurance limits so you don’t lose coverage when you need it the most.
Depending on your policy details, boat insurance can cover a variety of losses, including damage to the vessel itself, vandalism and theft, injuries/death of another person in case of an accident, and boat collisions.
Note that if you are carrying passengers for a fee or have chartered the boat to someone else, many policies have excluded coverage in these situations. If you are sailing in a location outside of your usual navigational territories, you also need to request additional coverage, otherwise the insurance company may reject the claims even for covered perils.
Did you know that drivers can save up to 32% on their car insurance by reducing their yearly mileage from 15,000 to 7,500? (Source)
Auto insurance is very important for drivers because it can financially protect you from expensive car accident-related expenses. Most states will require auto insurance for any vehicle that is registered with the DMV.
From comprehensive coverage, collision coverage, to uninsured motorist coverage, there are many different types of car insurance that aim to cover your injuries, damages, and losses in the event of an accident.
It is usually recommended to carry at least bodily injury/property damage insurance 50/100/50 coverage so you can drive legally on the road while also being financially protected. From litigation fees, medical bills, to vehicle losses, auto insurance is incredibly important due to the potential expenses of a car collision.
The first number ($50,000) is the bodily injury liability limit per person in the accident, the second ($100,000) is the entire accident’s coverage limit, and the third ($50,000) is the limit for property damage. Your insurance company will provide you with financial assistance if you have expenses that exceed your deductible and are below your coverage limits.
The type of vehicle you drive and your individual needs can also affect what kind of coverage you may need. For example, if you are a classic car collector or are using the car for commercial/filming purposes, you may need a different kind of insurance. If you own an RV, that is also a different kind of insurance.
Also called recreational vehicle insurance, RV insurance works similarly to auto and property coverage, though it is considered a separate type of insurance due to an RV’s unique risks and characteristics.
While states do not mandate travel trailer insurance, a lender may require that you carry both comprehensive and collision coverage so that there is adequate financial protection in case of an accident.
Depending on your policy, RV insurance can cover physical damage to your RV, roof protection, personal injuries, and more. Because RVs are such large vehicles, collisions with other parties can result in significant expenses and losses, which is why RV insurance is recommended for RV trailer owners even though it is not legally required.
Individuals with significant personal assets and liability exposures will need specific insurance coverage policies, which require customization and in-depth knowledge of the insurance industry.
Worth Insurance offers help with private client insurance. Whether that means you are looking for specialty carriers, superior coverages, or custom solutions, we can help you get the coverage you deserve so your unique risks, assets, and lifestyle are protected.
Our independent insurance agency begins with a personal assessment of your unique needs, risk appetite, and exposure. Through a comprehensive review, we help you find the custom insurance solution you need.
Purchasing insurance can be confusing and frustrating. There is such a variety of insurance types, and the policies all seem to have hidden fine print or exclude perils that you would like coverage for.
Worth Insurance is here to help you with the utmost responsiveness and clarity. Craft your custom plan so you can cover boat, fire, mold, cyber risk, umbrella, specialty vehicles, luxury home, custom situations… whatever your coverage requirements, we can help you get the insurance that suits your needs and desires best.
We get it–getting the right insurance coverage can be ridiculously frustrating. Insurance seems to mean the opposite of easy and painless. But Worth Insurance is here to redefine and reimagine the process.
Our team of expert advisors offers insightful, accessible help. You ask a question, and we’ll not just answer, but also give you solutions to help problem-solve and drive progress.
You can contact us online or call us at 561-463-5814. We also offer free quotes so you can get started on procuring the type of insurance you need quickly and easily.