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One of the easiest ways
of comparing insurance coverage is getting an insurance
quote. Many websites online offer quotes free, sometimes
for a fee. All that one needs to do is to enter the
zip code or select the state. A list of service providers
is given. Choose any service provider to see the rates
and services they offer. Auto insurance quote, life
insurance quote, home insurance quote, and health insurance
quote are the most sought offer.
Home
Insurance/ Homeowner's Insurance
There are seven basic types of home insurance:
HO-1. Basic homeowner:
Offers coverage for your home and personal property
against losses from 11 types of perils: fire or lightning,
windstorm or hail, explosion, riot or civil commotion,
aircraft, vehicles, smoke, vandalism or malicious mischief,
theft, damage by glass or safety glazing material that
is part of a building and volcanic eruption.
HO-2. Basic homeowner plus:
Same as above with more features: falling objects; weight
of ice, snow or sleet; three categories of water-related
damage from home utilities or appliances; and electrical-surge
damage.
HO-3. Extended or special homeowner:
Covers 17 stated perils plus any other peril not specified
in your policy, except for flood, earthquake, war and
nuclear accident.
HO-4. Renters' coverage:
Covers only personal property from 17 listed perils.
HO-5.
All risk coverage for building and personal property.
This policy form isn't sold very often anymore.
HO-6.
Condominium owner coverage: Covers personal property
from 17 listed perils along with certain building items
in which the unit owner might have an insurance
interest.
HO-7.
Basic older-home stuff: Covers dwelling and personal
property from 11 perils. Differs from HO-1 in that it
covers repairs or actual cash values, not rebuilding
costs. This is for homes where some historic or architectural
aspects make the home's replacement cost significantly
higher than its market value.
Special provision must be made to protect jewelry and
other valuable assets, and also for protection against
natural disasters. These are usually not covered in
a typical home insurance policy.
If you have a mortgage on your property, the lender
will require that you purchase and continue to hold
a homeowner's insurance throughout the duration of the
loan. If you don't have a mortgage, a homeowner's insurance
is necessary to guard against property loss or damage,
as well as liability lawsuits. Homeowner's insurance
has two types of coverage: casualty and liability. Casualty
covers the home and sometimes its contents. Liability
provides protection if someone is injured on the property.
A typical homeowner's insurance policy offers little
coverage for collectibles. To get coverage, it must
be specifically requested and paid for additionally.
Auto
Insurance or Automobile Insurance
Auto insurance protects individuals against a financial
loss if they meet with an accident. It provides property,
liability, and medical coverage:
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Property coverage pays for theft or damage
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Liability coverage pays for legal responsibilities
towards others for bodily injury or property damage
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Medical coverage pays for cost of treating injuries,
rehabilitation, and sometimes loss of wages or funeral
expenses
Thus a
complete automobile insurance covers fire, theft,
damage to the vehicle, and personal injury to the
victim of the accident. But many automobile owners
carry only partial insurance. There are separate car
insurance policies and motorbike insurance policies.
Life
Insurance
Life insurance may provide compensation for individuals
or groups either when the policyholder dies.
A permanent life insurance covers a person for a lifetime.
It may be
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Whole
life insurance
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Universal life insurance
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Variable life insurance
In a whole life insurance
policy, the cost of coverage is spread
over the person's life, in equal, regular installments.
The death benefit and premium in most cases remains
the same. In a whole life policy, a part of the premium
goes towards building cash value, which in turn could
pay off the whole policy in a few years time.
A universal life policy
is a permanent life insurance plan with some of the
features of term life insurance plan. The insurance
company calculates a flexible target premium. The insurer
may pay more or less than the target premium, depending
on his financial position. A portion of the premium
is set aside to pay the claims if a policyholder dies
during the policy period.
Variable life insurance
policies are similar to whole life insurance
policies, except that the overpayments from all insurers
are invested in the stock market.
Health
Insurance
Health insurance assures individuals and their families
of expensive healthcare facilities. The major types
of health insurance are:
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Hospital/medical insurance
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Major medical expense insurance
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Disability income insurance
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Dental expense insurance
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Long-term care insurance
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Group self-insurance
Long Term Care Insurance
Those who can afford to pay the premium or those who
do want to be dependant on others usually take this.
Also, people who currently have health problems or have
a family history of a long-term illness take a long-term
care insurance plan.
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