SPECIAL SECTION:
INSURANCE
Insurance acts as a safety net for life’s unexpected turns. Although
the type of insurance you have and the amount of money you are
putting toward insurance vary with age, income and lifestyle, among
other things, it is important to be educated on insurance and to be
covered. The level of protection provided by insurance depends on the
amount you put toward your policy, and determining the right policy
for your specific situation is key.
The most common types of insurance include home, auto, and life.
If you only choose three types of insurance to have, these are the top
choices to cover what could be most devastating to you and/or your
loved ones. It is important to first understand some standard insurance
terms:
• Premium – cost of the coverage provided by an insurance plan
• Deductible – amount of money owed before insurance begins
to pay
• Rider – additional benefits/options added to an insurance policy
• Underwriting – review process of application by the insurance
company to determine final price, based on risk to the insurance
company
Homeowners Insurance
If you own a home, or are in the market to buy your
first house, homeowners insurance is an important
policy to acquire. Although homeowners insurance
is not required by law, many mortgage lenders
require it in order to borrow money for a home loan. Homeowners
insurance typically covers any damage done to your house or injuries
to individuals that happen on your property. This insurance covers
structural issues, personal belongings, liability protection, and
additional living expense incurred if temporarily removed from your
home due to fire or other significant disaster. Damage caused by
natural disasters such as