5 Reasons Why Personal Insurance Is Necessary
If you think you're fine without personal insurance, think again. What will protect you in the event of an accident, theft, or natural disaster? Will you be able to cover the costs of the aftermath?
Personal insurance is more than coverage for home and auto—it covers your property, your family, legal and medical expenses, and much more.
If you've never heard of personal insurance before or you're wondering why you need it, read these five reasons. You'll learn how this type of insurance will protect you and your family and why it offers peace of mind.
What Does Personal Insurance Cover?
Before we go over the key reasons you need personal insurance, let's briefly cover what this type of insurance protects. There are a few different types of coverage that fall under this umbrella.
Homeowners and renter's insurance protect your home and your assets. It covers the structure of your house (or property that you rent) as well as your belongings. Personal liability coverage is also usually covered under these policies.
Auto insurance covers your vehicle against theft or damage. It also covers the costs of medical treatment and liability if you cause injury or damage to someone's property.
Umbrella policies offer extra coverage for when you need it. It's supplemental insurance to protect your assets.
Now that you know about the different types of policies that fall under personal insurance let's go over why you need to have it.
1. Protects You in the Event of Property Damage
Imagine the following scenario. You and your family are hunkered down for the evening as a bad storm rages on the outside. A large tree that you've never thought twice about before falls over right onto your neighbor's roof.
You didn't expect this to happen, but now you're responsible for the property damage. Your neighbor might even pursue legal action if you don't pay for it. Your neighbor has a right to financial compensation.
What if you don't have homeowner's insurance? In that case, you would have to pay for the damage out of pocket.
If you're one of the 69% of Americans with less than $1,000 in your savings account, this could spell disaster.
A homeowner's insurance policy covers your dwelling, your personal belongings, structures on your property, and liability for damages to someone else's property.
You also have the option of adding additional coverage, such as earthquake or flood insurance. Homeowner's insurance usually covers wind, hail, fire, and lightning strikes but does not cover these types. That's why it would be a good idea to purchase additional coverage, especially if you live in flood-prone areas.
2. It Covers Bodily Injury
If you have a dog and your dog bites someone on your property, such as a delivery man carrying a package to you, that carrier could sue you for their medical expenses. In addition, they might sue you for lost wages due to missing work, and emotional distress.
These costs can quickly spiral out of control if you're found legally liable. Without the right insurance company on your side and a personal insurance policy, you would have to pay these costs yourself.
Personal liability insurance, covered in most homeowner's insurance plans, would protect you in this case. It would cover the expenses should you be found legally liable for them.
Keep in mind that personal liability insurance covers injuries to others. If you sustain injuries yourself, you would need a health insurance plan to cover those costs.
3. Recoup the Costs from Theft
No one wants to imagine a home break-in or theft, but they do happen. In the event of a home burglary, would your belongings be covered?
They would if you have personal property coverage. This type of personal insurance helps to pay for the replacement or repairs of your personal belongings. If a thief broke into your home or apartment and stole your expensive electronics, for instance, this type of insurance may help replace them.
Dwelling coverage also helps to pay for any damage caused by a break-in. For example, if an intruder breaks a window or door to enter the building.
There is also additional coverage for other structures, such as a detached garage or tool shed.
4. Auto Insurance Covers You and Your Vehicle
Auto insurance doesn't only cover your vehicle; it also covers you in the event of an accident. If liability falls on you, you would have to pay for the medical expenses, repair costs, and more.
If you get into a car accident and damage someone else's vehicle or injure them, car insurance will cover this.
In certain states, it's also against the law not to have auto insurance. You might face fines or a license suspension.
Unfortunately, the nationwide average of uninsured drivers in the United States is one-in-eight. This has led to a crackdown on people driving without insurance in states where it's illegal to do so.
There are many types of insurance out there, but auto insurance is one policy you can't afford to skip.
5. Umbrella Policies Offer Additional Coverage
If you already have home and auto insurance, do you need an umbrella policy? It might be a good idea to get extra coverage for your car, home, boat, property, and so on. It offers extra liability coverage, essentially extending your existing policies to cover more.
This protects you more if liability falls on you for injury or property damage. If you lose a lawsuit for an amount greater than what your insurance covers, you will have to pay for those costs.
It's also a good idea to invest in an umbrella policy if you have a watercraft. This type of insurance picks up where liability insurance stops.
Coverage You Can Count On
These benefits of personal insurance are only the beginning. If you want to learn more about what insurance can cover, talk to an insurance company. Don't wait until it's too late to protect what matters to you.
At the Central Carolina Insurance Agency, we want to help protect you and your family. Get a quote today, and one of our agents will reach out to you shortly.