Unless it is required by law, like auto insurance, most people will not purchase any kind of insurance coverage. Insurance covers a person or business for something that could happen. Once that event has occurred, you can no longer procure coverage to cover the expenses of that specific event. Since insurance covers what is probable, some see it as an additional expense that may never pay out. While this may be true, there are plenty of instances where the expense of insurance is less than the potential expenses. Equine liability insurance, for example, is meant for those in the equine industry. It covers litigation costs if a lawsuit is brought against the horse owner.
Here are three more types of insurance.
Homeowners who take out a mortgage to pay for their home are advised to procure a series of insurance coverage. Purchasing a home is already a hefty purchase, and potential damages due to fire, natural disasters or theft can make it more expensive. If you are a renter, though, you may not know that renters insurance exists, too. Renters insurance helps you recover, up to your policy’s limit, loss and damage to your personal belongings within your rented unit. If you own expensive electronics, furniture or furnishings, you can cover them in case of theft with this policy.
Umbrella insurance can be purchased for both personal and business liability. If someone falls on your property and sues you, umbrella insurance coverage kicks in if your homeowners insurance maxes out. It works in the same manner for a business. If someone falls on your commercial property and brings a lawsuit against you, the umbrella is a way to extend your liability coverage in case your business liability insurance maxes out.
Everyone is going to age, and as the average lifespan increases, it means that you may have to plan for a longer retirement than the generation before you. If you retire at age 65 and live to 90, you will have to figure out how to fund those years. Additionally, the later years tend to be expensive due to an increase in medical visits and services. Long-term care insurance can help keep those costs affordable.
Insurance is one of those products that are not appreciated until they are needed. Three insurance policies you may consider procuring are renters, umbrella and long-term care.