What Items Should I Insure?
Insurance is an important financial tool, but it can be tricky to know what insurance you need. Not having enough insurance can leave you at risk should anything unexpected happen, but having too much insurance simply wastes your money. Knowing what items you should insure is important, and so here are some tips on which items you should get insured:
One type of insurance that many people overlook is disability insurance. Even people with good health insurance sometimes donít have adequate disability cover. Your health is probably your most precious tool, and you cannot afford to lose it. If the worst does happen then you need some form of compensation in order to get through such a difficult time. Disability insurance is something that everyone should be insured for.
Life insurance is also an important type of insurance. Although it obviously gives you no benefits, if you want your family to be financially secure after you die then it is an essential thing to have. Having adequate life insurance cover will make sure that your family can support themselves after you are gone.
Your home is probably the biggest asset you own, and so it pays to have it insured. You need to make sure that both the property itself and its contents are fully insured for any loss, theft or damage. If you live in an area that is particularly prone to bad weather such as flooding, then this is an important type of insurance for you to get. Anyone who has a home should have his or her possessions and property fully insured.
Car insurance isnít just important, it is a legal requirement. Although you donít have to have comprehensive insurance, some level of car insurance is required for you to be allowed to drive on public roads. If your car is valuable then it is important to be insured for damage as well as basic theft.
Perhaps the most complex of all insurance types is liability insurance. This insurance protects you from others. If you are involved in an accident or make an error that causes damage to someoneís property or to themselves, then you might end up being sued. Having liability insurance will protect you from the harmful costs of compensation should they occur. The amount of cover you need depends on your net asset worth and how much you can afford to lose.
Insurance you should not get
Although many types of insurance are essential, there are types of insurance that simply arenít necessary for most people. Insurance like flight insurance or payment protection insurance is usually overpriced and unnecessary. These types of insurance cost more than the benefits they give you, and most of their clauses will be covered under other comprehensive insurance policies that you have. The most important thing to remember with any type of insurance is to shop around and get advice before you buy. If you do this then you will end up with the right level of insurance for your needs.
About the Author: Peter Kenny is a writer for creditcards-gb.co.uk.
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