The Pros and Cons of Different Types of Insurance

Insurance can be a confusing thing to navigate. There are so many types of insurance, it’s hard to know what you need and when. From car insurance to earthquake coverage, there are many different types of insurance available. Here, are some tips on how to decide which type of insurance is best for you and your household.




The Different Types of Insurance


BLS


This is the simplest kind of insurance to understand. Most homeowners will have a BLS policy. Homeowners insurance is a form of property insurance. It covers damage caused by an insured property’s inanimate parts, but excludes personal property such as clothes, furniture, jewelry, etc.


Most homeowners also have homeowners liability insurance to protect them if someone who does not reside in the home is injured in the home. If you’re responsible for someone else’s injury in the home, you are responsible for that person’s medical and legal costs.


Allstate


Next is Allstate. Allstate has a wide range of coverage options and the lowest insurance rates in the industry. We will post a dedicated article on it later.


Homeowners Insurance


Think of home insurance as the basic insurance policy for your home. If you have a home, you have homeowners insurance. Homeowners insurance usually has three main types to choose from.


Homeowner’s Liability – If you are the owner of the house and are liable for the damages or loss, you would have homeowner’s liability. While it protects you financially, it can also affect your relationship with your neighbors. If you aren’t the owner of the home, you don’t have homeowner’s liability.


Specialty Coverage – If you are a renter, you would probably want to consider buying insurance for your belongings. If you have owned your house for several years, you may want to consider taking out additional coverage to protect your belongings.



Car Insurance


You may want to consider getting your car insurance from a reputable insurance company. It’s a good idea to take your car to a mechanic and have it looked at by a professional so you can know what kind of car insurance you can get.


However, it’s important to know what car insurance is best for your needs. Before you spend your money, consider the pros and cons to make an informed decision.


You can often find a list of reputable insurance companies online at Insureon.com.


One thing to keep in mind is that most car insurance companies will give you at least a discount for insuring your car through them.


Health Insurance


If you’re employed, you have some health insurance benefits. An employer can offer benefits for a wide variety of ailments, including:


Business health insurance


Prescription drug insurance


Long-term care insurance


Medical costs are usually covered under the insurance, although you may be able to contribute to those costs depending on the type of insurance you have.


You can also apply for health insurance outside the work environment. Sometimes, people who are self-employed or working part-time need to get their own health insurance.


If you are applying for health insurance outside of the work environment, there are several options. You can buy a health insurance policy through a private individual health insurance provider.


Cost vs. Coverage


Before you can decide which type of insurance you need, you must first decide what you’re looking for. It’s important that you know what your current costs are before you try to determine which type of insurance you should buy.


Because most insurance policies cover different categories of risks, you have to choose the type of insurance you need to cover the risks you are most likely to encounter.


For instance, if your house is less than 15 years old, earthquake insurance probably wouldn’t be a good idea. Instead, you should consider buying flood insurance, which is less expensive and is designed to cover any flood-related damages.


After you determine what type of insurance you need, you can determine the appropriate coverage levels.


When to Buy Insurance?


Most people don’t know when to buy insurance, but it’s recommended that you do so at least one year in advance of the worst case scenario, so that you have time to get money and assets together to pay for the repairs, whether that be a claim for damage or an injury.


Other important times to buy insurance are when there’s an event that could create liability on your part. If you have kids, for example, and your child has an accident while driving, you could be sued for their injuries. That’s a good reason to buy insurance against that situation.


The obvious, most popular time to buy insurance is when you buy a new car or move. You should also purchase insurance when you are thinking of making a major purchase, such as a car or house.


Conclusion


Despite these options, the best way to keep your home safe in the event of a fire or flood is to make sure you have a landlord’s insurance.


This policy provides a cash payout to landlords when the building is damaged by a natural disaster. Furthermore, if you are renting an apartment or home in California, your landlord’s insurance is also required by the state.


If you’d like to learn more about these policies, check out a professional California fire inspector for more tips on surviving fires and floods. With their help, you can make your home as safe as possible, and can prevent disaster through careful preparation.


Want to make sure you have the best possible insurance? Take our 30 minute quote quiz and learn the ins and outs of all your available insurance plans.


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