Most people are extremely underinsured. They have insurance policies that are required by law and skate by without anything extra. It can be difficult to have proper insurance, especially if you’re already living paycheck to paycheck, but being properly insured will benefit your life when it comes time to cash in on them. Whatever trials you might be going through now to make money tight, things will be far worse if you don’t have the proper insurance policies. Here are 3 types of insurance everyone should have.
Homeowner’s/ Renter’s Insurance
Homeowner’s insurance might seem like a no-brainer, but you’d be surprised how many people don’t have homeowner’s insurance. Those who do, often don’t have the proper coverage. Shell insurance is required when you have a mortgage, just like full-coverage is required when you’re financing a vehicle. It allows the bank to know that their investment is covered. Shell insurance only covers your home’s structure, and that isn’t nearly enough when a disaster strikes. You’ll get your home repaired or paid for, but you’ll have to say goodbye to all of your belongings inside with no way to replace them.
If you only have shell insurance, add to your policy to cover your belongings, even if it’s just a little bit. You can insurance $10,000 worth the items without paying much extra a month. For most people, it will allow them to buy new furniture and clothes for the family. Coverage for your belongings is what renter’s insurance consists of. When people rent out a home, they don’t insurance your belongings, that is your responsibility. A survey conducted in 2013 shows that only one-third of renters had renter’s insurance. This leaves two-thirds of renters completely vulnerable to losing everything they’ve worked for. If you’re interested in adding renter’s insurance to your list of insurance policies, learn more here.
Life insurance is extremely important and sadly underused. If you have no family, it might not be a big deal, but for most people, it’s a necessity. Anyone with children who doesn’t have life insurance is taking the chance that their child will have nothing if something ever happens. Even if you have someone appointed to raise your child in the event that something happens to you, that’s another expense on that person and it could be extremely stressful. Make sure that whoever will be raising your kids has your life insurance to help with expenses. Life insurance can also pay off your home if you own your own home and pay for your child’s college as well. It means the difference between struggling and having no financial burdens.
Identity Theft Protection
Identity theft happens far too often, especially with everyone’s personal information being on computers these days. If someone steals your identity and opens accounts, you could spend years with poor credit trying to get them straightened out. Identity theft protection is an insurance policy where if someone steals your identity, the monitoring company will stop it in its tracks. If the monitoring company doesn’t stop the unauthorized transactions, they will pay out the money that was stolen and make sure the mistakes are fixed.
Insurance is extremely important and greatly underused. Make sure you have these three types of insurance because it could drastically alter your life for the worse if you don’t. It protects you and your entire family when you are properly insured.