Insurance Coverage Check List

Auto Insurance

If you own and operate a car, you should purchase auto insurance. States have laws that require drivers to carry certain minimum levels of liability insurance, so in many cases, you must purchase insurance simply to drive your car legally. Collision insurance and comprehensive insurance are auto coverage types that can compensate you if storms, fires, vandalism or accidents on the road damage your car. You should carry these types of insurance if your car is valuable and would be financially difficult for you to replace.

Health insurance is perhaps the most essential type of insurance coverage to carry, since every person can have medical issues that require immediate attention. Health insurance compensates you for various costs related to health care, such as the cost of surgery, doctor's visits, cancer treatments and drugs. Every insurance policy is different, but it is important to at least carry health coverage that will help pay for the treatment of severe problems, since operations and treatments can cost tens of thousands of dollars. Many workers receive health insurance through an employer.

Homeowners insurance can compensate you for losses related to owning a home. If you buy a home you will likely be required to purchase homeowners insurance by your mortgage lender. If you have paid off your mortgage in full it is important to continue to carry homeowners insurance to protect the investment you have made in your home. Renters can also purchase insurance that will protect the value of the personal items they have in an apartment. Renters insurance is most important for those with many valuable possessions.

Life insurance compensates beneficiaries in the event of your death. If you are a young single worker without a family, you may not need life insurance. Life insurance is important for those with families to make certain that family members are able to cope financially in the event of an unexpected death. There are two main types of life insurance: term life insurance, which covers a fixed span of time such as 10 or 20 years, and whole life insurance, which lasts as long as you keep paying premiums.