Insurance coverage: What You Need and Why You Need It
We'll assume that since you're viewing this page, you don't need to be
convinced about the importance of having at least some form of insurance
coverage.
But what kinds are the most important to have? And why? Below is a quick
guide to understanding the basics.
Please note: everyone has different circumstances. You may not need
some of the policies described here. You may also need or want a particular
policy that isn't listed here.
* Denotes the types of coverage that you can find when you use InsureMe’s
matching service. Fill out our short quote application, and we’ll match you
with agents who can offer you quotes.
|
Coverage type |
Required or Recommended? |
Why have it? |
|
Auto coverage* |
Required in all 50 states. |
Because you want financial protection against
costs associated with accidents, hospital bills, and lawsuits. |
|
Homeowner's coverage* |
Usually required by mortgage
lender; highly (highly) recommended either way…. |
Because you want protection against damage to
your home, litigation, theft. |
|
Flood coverage |
Usually required by mortgage
lender if home is in floodplain; highly (highly) recommended. |
Because you don't have a waterproof home and
waterproof belongings. |
|
Earthquake coverage |
Usually required by lender
if home is in quake-prone area. |
Because … you live in an area prone to
earthquakes. |
|
Health coverage* |
Required in |
Because (1) you're mortal and (2) health care
is very expensive. |
|
Life coverage* |
Highly recommended.
Considered essential to sound personal finance. |
Because (1) you have a family that depends on
your income, (2) you don't want your family to pay your funeral expenses. |
|
Disability coverage |
Highly recommended. Some
experts say it's as important as life insurance. |
Because you depend on your income to pay the
bills. (Unless you're working for the fun of it.) |
|
Long-term care coverage* |
Recommended for anyone who
has difficulty with normal daily tasks, such as preparing meals,
bathing, dressing, and using the bathroom |
Because (1) you prefer in-house care (2)
paying out of pocket for daily care is very expensive. |
