Insurance policies are abundant in the United States because incidents are abundant in the United States. Each year, people invest trillions of dollars in various types of necessary coverage. A myriad of policies exists, and they all have the same main goal: protection. The purpose of an insurance policy is to protect the policyholder from a specific loss. A policyholder could be a resident, business owner or worker. The policy is in place to provide the insured party with financial coverage when a catastrophe strikes. The following are 10 types of policies and their main purposes:
1. Landlord Protection
Landlord insurance is special insurance for people who invest in property. The insurance covers landlords in cases of natural disasters, theft, vandalism, flood and the like. Landlords can purchase additional insurance (add-on) to cover other unforeseen elements.
2. Renter’s Policies
Renter’s insurance is a policy that protects the renter rather than the landlord. A rental insurance policy covers a renter in situations such as theft and natural disaster. Rental insurance covers the renter’s personal property such as computers, mobile phones, books, clothing and more. The monthly premium for rental insurance can be as low as $10, and it can provide a renter with peace of mind.
The main purpose of life insurance is to provide a financial cushion for people’s children when they pass away. Life insurance helps with household bills, burial expenses and more. Three types of life insurance policies exist. Term life insurance is the most popular as it is the easiest to obtain. Term life insurance is straightforward and does not build cash value. Whole life insurance accrues cash value. Universal life insurance policies are policies that provide investment opportunities and healthy return rates.
4. Homeowner’s Coverage
The law requires homeowners to purchase insurance before they close on a deal. The homeowner’s insurance policy provides the person with protection in the case of a flood, fire or another disaster. A homeowner’s policy can provide the funds necessary to fix the home structures.
Automobile policies help drivers to meet state regulations. Additionally, they cover the costs of auto repairs and medical bills if a driver sustains injuries. It protects the driver in case of personal injury to someone else, as well. Premiums vary according to the deductibles and the add-ons that each driver chooses.
Health insurance provides patients with access to the medical treatments and medications that they need. Healthcare costs are extremely high these days. Health insurance gives patients access to benefactors that pay a portion of the bills to the care providers. Health maintenance organization insurance and preferred provider network insurance are the two main types of health insurance on the market at this time. The monthly premiums vary according to the deductibles and the pay percentage. An 80/20 policy with a low deductible will have a high premium for example.
7. General Liability
Businesses need to have general liability coverage in case someone sues their companies. Customers can sue businesses for on-site injuries, improper procedures, faulty equipment, libel, slander and some other instances.
8. Workers’ Compensation
Workers’ compensation protection is something that businesses have to provide to their employees if they have more than three employees. The insurance covers injured workers when they obtain their injuries on the job. The benefit covers medical bills for injured workers as well as lost work wages until the workers can return to work.
9. Personal Injury
Personal injury coverage is something that all businesses should have because a personal injury suit can arise at any time. A personal injury is an injury that happens to one person because of the neglect of another person. An example of a personal injury is a slip-and-fall incident on a wet department store floor. The injured person may be able to collect thousands or millions of dollars through a personal injury attorney. Personal injury insurance covers the establishment with enough funds to pay legal fees and a claim settlement.
Electronics insurance is a policy that covers devices such as mobile phones, computers, laptops, music players and more. It allows a device owner to obtain a replacement device for a fraction of the retail cost. A monthly premium can be as low as $5 a month with a deductible at around $50. The insurance is quite helpful for people who spend hundreds of dollars on their equipment.
Many other types of insurance exist in the United States because the US is a nation that strives to cover its citizens. A consumer must perform a calculation before purchasing an insurance policy that the state or government does not mandate. The individual will have to look at the frequency and cost of occurrences. Insurance is a huge benefit in most cases.