coverage for damage to your home along with outlying structures
(sheds, detached garages, fences, in-ground swimming pools, etc.).
General homeowners insurance also covers personal liability for
accidents that happen on your property. For example, if someone slips
on ice in your driveway and injures him/herself, your coverage will pay
damages to cover the cost of the person’s medical care. In addition, if
damage is done to a material item in your house, for example a vase was
broken, insurance will kick in to cover replacement costs. Most policies
provide a minimum of $100,000 in personal liability coverage to cover
damages, but this number can be increased. Certain exclusions apply to
liability coverage depending on your insurer’s policy. It is important to
familiarize yourself with the policy to know what is included.
Automobile Insurance
One type of insurance required by law is
automobile insurance. Auto insurance covers
accidents, theft, vandalism, or other damage caused
to your car. It typically covers liability if you were
to cause a car accident, collision, comprehensive (if you hit a deer,
for example), medical expenses for you and passengers involved in
an accident, roadside assistance, and rental reimbursement. When
applying for coverage, insurance companies evaluate risk to create
rates, considering factors like age, gender, location, vehicle type,
marital status, accident history, driving record, annual mileage, and
credit score.
When looking to improve your rates, first address the risks that an
insurance company evaluates when determining premiums. While
factors such as age and location cannot easily be changed, look into
driving a car with a good safety rating, taking a safe driving course,
or investigating alternative methods to get around, such as public
transportation, to lower the number of miles you put on your car each
year.
Life Insurance
Unlike buying a homeowners or auto insurance
policy, there is no “right” time to buy life insurance.
Life is unpredictable and tragedy can strike at any
time. It is best to be prepared by being proactive.
Many companies offer life insurance plan options when you are hired,
making this an optimal time to sign up. If you are single without
children, you may want to hold off on putting a large amount of money
toward life insurance. Otherwise, there are many variables to consider
when deciding on a life insurance policy that is right for you.
Life insurance falls into two levels, term or whole life. Term life
provides coverage for a specific period of time, such as one year, 10
years, or up to 30 years. If you are under the age of 80, you are eligible
for term life. If you die during the term, your elected beneficiaries
will get a payout. If you die after the term expires, there is no payout
available. Term is often the least expensive way to purchase a substantial
amount of coverage for beneficiaries. The greatest difference between
term and whole life is that whole life covers an individual for an entire
lifetime. Whole life typically has fixed periodic premiums based on the
assumption that the person will retain the policy throughout his/her
entire life, with a death benefit that remains level.
Bundling
We often purchase auto, home, and life insurance
at different p