Insurance refers to financial protection against the risk of damage or destruction to property. A contract by which the insurer agrees to indemnify the insured for loss arising from such risks. And there are many different types of insurance coverage for just about every aspect of life. Here are six types of insurance you didn't know you needed.
Catastrophe insurance covers the costs of repairing or rebuilding after a catastrophe such as a fire, flood, hurricane, or tornado. This type of insurance is generally sold with other home and business insurance, making it easy to forget. But if your home is destroyed by a storm, fire, or other natural disasters, you'll be happy you had the coverage. It also covers medical expenses, damaged vehicles in floods, and temporary housing.
Identity theft fraud typically occurs when thieves use your personal information to open credit accounts, gain access to your bank accounts, and commit other financial crimes. If you are the victim of identity theft, cleaning up after the fraudsters run off with all of your money can be challenging and time-consuming. This is why it's essential to have protection in the form of identity theft insurance.
For example, if someone steals your identity, it could take months and hundreds of dollars to restore your bank accounts, credit scores, and reputation. Identity theft insurance helps you by providing free assistance from an experienced team of professionals who will work with you to get a new driver's license or social security number if yours becomes compromised. It also covers lost wages for taking time off work.
Valuable items insurance is a standard form of coverage that most people forget. This insurance policy covers the loss or damage of valuable items, such as jewelry and computers, if you should have an accident. However, remember that this is only for valuable items not typically covered by your home or business owner's insurance policy.
For instance, jewelry insurance can cover damage or loss of jewelry pieces. If your jewelry was stolen or damaged, you can file a claim for a replacement piece or repairs if it is accidentally damaged.
Travel insurance covers you for any medical expenses and other costs that arise from traveling at home and abroad. With this type of insurance, you're covered for everything from medical emergencies to canceled flights, trips home due to an illness in your family, and lost luggage. This type of insurance is best purchased before you leave on your trip, but it's not too late. If the event is foreseeable, you can purchase travel insurance after booking your trip.
If you're going on vacation or just visiting family for the weekend, you probably plan to rent a car. But did you know that most rental car companies require you to have liability insurance? Most rental companies offer their insurance, which is usually more than enough. But if the car is damaged or destroyed while driving, they may deduct the costs from your deposit. And that's why getting an insurance policy for your rental car is important. You'll never have to worry about being stuck with an expensive bill due to an accident while driving someone else's car.
Owning a pet comes with many great benefits and lots of responsibility. But it can be comforting to know that if your dog gets hurt or has a medical emergency, it will be okay because you have pet insurance. Pet insurance covers the cost of veterinary bills if your pet requires surgery or other treatment from a vet. It also covers hospitalization and emergency pet care, which would be much more expensive to cover out of pocket.
People need extra protection and insurance plans just in case something terrible happens. There are various types of insurance that you can get to protect yourself from various liabilities. Getting enough insurance coverage to cover all the liabilities that may affect your life is important. This is why you need a financial advisor who will assess your needs and help you find the right plans for your situation.