Any prudent individual will always have financial and property protection in mind. When you spend long hours each day working to provide for yourself and your family, you want to have that assurance that all your hard work won't just go to waste. Of the many things that you can do to protect your assets, one of the best moves is to invest in insurance.
What does insurance mean? It refers to policies that have a purpose of providing property and financial protection coverage. Should any contingency arise, you can sleep well at night knowing that your assets will not be going down the drain.
If you're looking for an insurance policy to invest in, you're in the right place. In this article, you'll be exposed to the different insurance policies that you should know about:
1. Mortgage Life Insurance
What is mortgage life insurance? This refers to an insurance policy that's meant to repay mortgage debt in the event of the borrower's death. This is unlike traditional life insurance, wherein the death benefit is paid out as soon as the borrower dies. Here, the benefit is only paid out when two conditions are met:
-The borrower dies or is permanently disabled or permanently ill
-There's still an existing mortgage during the death of the borrower
With mortgage life insurance, the payout is given not to the heir or a family member of the person who died, but to the mortgage lender. Hence, the ones who will be left behind will have little to no mortgage debts to worry about.
Having said that, here are the advantages of mortgage life insurance:
-It results in a mortgage-free home in the event of death, illness, or permanent disability of the borrower.
-It doesn't necessarily require death, unlike in traditional life insurance. Here, the payout can be made for as long as there's a permanent disability or illness.
-It gives the policyholder some peace of mind.
On the one hand, here are the disadvantages of mortgage life insurance:
-It has a declining payout, which means that the premium stays the same, but the possible payout may decrease when you pay your mortgage off.
-It helps the lender more as it's the bank that receives the payout and not your family.
2. Homeowner's Insurance
The homeowner's insurance is a form of property insurance that covers damages to the residence of the homeowner or policyholder. This damage can include furnishings and all other assets that are found inside the house. In some instances, the homeowner's insurance can also provide coverage against accidents in the property.
Some of the benefits that you can gain from investing in homeowner's insurance are the following:
-Your investment or your home is protected.
-You don't have to pay high costs monthly as there are premiums that are at a lower price.
-You don't have to worry about any possible contingency that may happen to your home.
3. Commercial Property Insurance
This type of insurance applies to those who own commercial properties. When you've invested your hard-earned money in a commercial property, you want to protect it from both minor and major losses. The protection that commercial property insurance provides includes the entire building, and even its content.
Furthermore, commercial property insurance also protects the physical assets that are inside your business establishment. Examples of these physical assets are the following:
-Money kept inside the building
-The building itself
-Important documents
-Outdoor signs
-Computers and other equipment
-Furniture and fixtures
4. Renter's Insurance
The renter's insurance is a policy that provides coverage on belongings, liability, and living expenses in case of loss. This type of insurance is only applicable to those individuals who are renting out homes, apartments, or condominium units, among others. Additionally, this policy also protects the tenants.
Generally, there are two types of coverage that anyone can apply for under renter's insurance. These are the following:
-Actual Cash Value Coverage recompenses you for the total amount of the items lost or damaged.
-Replacement Cost Coverage encompasses the costs that it entails to replace the items lost.
5. Flood Insurance
Did you know that, in some cases, your regular insurance coverage doesn't include flood insurance? Generally, flood is left out from the list of natural disasters that are covered by other forms of property insurance. If you live or have property in an area where flood is a high risk, then all the more that you need to avail of a flood insurance policy.
There are many compelling reasons why you should take out a flood insurance policy, and these include the following:
-It protects your property.
-It improves your home's value.
It keeps your loved ones safe.
-It gives you peace of mind, especially if your area is flood-prone
6. Earthquake Insurance
Earthquakes are another type of natural disasters that no one has control over. While you can't prevent it from happening, there are things that you can do to protect yourself and your family, should it happen in your area. One of those is by signing up for an earthquake insurance policy.
Note that, generally, your homeowner's insurance policy doesn't cover earthquakes, only fires resulting from earthquakes. Hence, if you've got an existing mortgage on your property, then all the more that you need an earthquake insurance policy. This covers some of the damages and losses that may be caused by earthquakes to your home and personal belongings.
Conclusion
This list of insurance policies is only limited. As you talk to and meet more insurance providers, you'll see that there are more options for you to choose from. There's no one insurance that's better than the other. At the end of the day, it's still a matter of personal choice. The insurance policy you should opt for must be dependent on your needs, as well as on what you want to protect the most, materially. But, this list is a good place for you to start. Now, all that's left for you to do is to get in touch with an insurance provider that you can trust.
