The amount of auto insurance coverage you need depends on a variety of factors. Some factors you should consider when you buy auto insurance coverage include:
Home insurance, also called homeowners insurance and home owner insurance, is a type of property insurance that covers privately owned homes. It protects you against damage to your home, the loss of use of your home, and loss of your personal belongings. It also provides liability insurance for accidents that may happen at your home or on your property.
Though it varies from state to state, there’s usually no law requiring home insurance (unlike car insurance).
If you borrow money to buy a house, however, the mortgage or deed of trust will require that you have enough insurance to cover the cost of repairing or rebuilding your home if it’s damaged. In this case, your mortgage company will typically be named as “loss payee” on your policy. If your house is damaged, the insurance payment will go to the loan company (or to both you and the loan company) to ensure that the money is used to rebuild or repair the house. If you choose not to rebuild, the insurance payment will be applied directly to your loan.
You need home insurance to protect your house and your belongings against damage and loss, as well as to protect you financially if someone is injured in your home or on your property.
Life insurance is a contract between you and the insurance company. You agree to pay set premiums to the insurance company during your lifetime (or agreed-upon term). In return, after your death, the insurance company will pay a specified sum of money to your designated beneficiaries. Typically, life insurance can cover funeral expenses, mortgages, college tuition, and more.
Traditionally, only people with dependents (like a spouse or young children) sought life insurance policies. Today, however, a good life insurance policy makes sense for a wide range of individuals. Experts recommend getting life insurance if someone you know (such as a business partner, spouse, or family member) may suffer financially upon your death.
Life insurance can be an important component of a sound financial strategy. It can: