Insurance is an important type of financial protection that you need to have. By having insurance, you'll get help paying for repairs to your home or car after damage, and that could make a big difference to your finances and ability to have the work done that you need. While you know you need health, car, and homeowner's insurance, you may not know about these other types of insurance you could need.
Non-Owner Car Insurance
If you don't own a car, you may think you don't have to worry about car insurance. However, in some cases, having non-owner car insurance is a good idea. By carrying this insurance, you have protection when you drive a friend's car, rent a car, or use a car sharing service. These policies vary, so you'll want to understand your coverage if you want to have a policy so you can save money on rental car insurance. Another reason to buy non-owner insurance is when you're without a car temporarily. Having a non-owner policy prevents a lapse in your insurance coverage that could cause your insurance rates to go up or make it difficult for you to get insurance.
Renter's Liability Insurance
If you move to an apartment temporarily and you don't have belongings of much value, you may think you don't need renters insurance. However, while you may not care about the value of your furniture or belongings, you still need renter's insurance to cover you against accidents in your apartment. If someone trips and falls in your apartment or if your dog bites someone, liability insurance could pay for their medical care and your legal fees so you aren't faced with huge bills you can't afford to pay.
Disaster Insurance Policies
When you buy a homeowner's policy, be sure you understand what it does not cover. You usually have to buy separate policies for natural disasters such as flooding and earthquakes. Since these events could destroy your home, you want to have coverage for them if you're in an area at risk for these disasters. Having flood insurance could mean the difference between having funds to clean up water damage and rebuild your home or having to take a total loss on your biggest financial investment.
Choosing the right insurance coverage can be tricky when you don't know what coverage you need. Talk to your agent and get advice. Explain your lifestyle and living situation so the agent can make sure you're always covered in case of an accident you're involved in or cause.