| There are different types of insurance. Home, | | | | are found at fault. |
| automobile, and life are just three of the various | | | | With home owner's insurance, the minimum |
| kinds of insurance policies that are available for | | | | coverage level is often determined by the lender. |
| consumers. Insurance, of all kinds, is used to help | | | | Many home owners will add to this level of |
| protect consumers when certain things happen. | | | | coverage in order to protect such things as their |
| For the most part, this protection comes in the | | | | furniture and other personal items against loss. |
| form of money. It can also provide protection | | | | Coverage will usually extend to people who may |
| from liability, damages, and financial loss, but in the | | | | be on the property should they encounter an |
| end, it usually comes down to money. | | | | accident and sustain injuries. Again, the importance |
| Most consumers know that there are certain | | | | of insurance is to protect the owner from legal |
| types of insurance that are mandatory. Many | | | | actions that may arise from outside parties as |
| states require that automobile owners carry a | | | | well as to protect the owner from real property |
| minimum amount of insurance for each vehicle | | | | damage such as fire. |
| the person or business owns. As with some other | | | | In the area of home owner's insurance, there is |
| types of insurance, automobile insurance can be | | | | often controversy over what is known as flood |
| somewhat broad in nature. In other words, you | | | | insurance. Home owners should not assume that |
| can buy a simple liability policy that will pay a | | | | their policy covers damages due to flooding. This |
| certain amount of money to someone that you | | | | is often assumed by home owners and can lead |
| have an accident with, but will pay nothing | | | | to severe losses should a flooding event occur. |
| towards your own damages. Moving up the scale, | | | | The only way to know if you are covered for |
| you could purchase a more comprehensive policy | | | | flooding is to ask the direct question to your |
| that pays for damages to both you and the other | | | | insurance company and to read what is in the |
| person, including medical awards and property | | | | insurance contract. Thousands upon thousands of |
| damages. There are levels of coverage all along | | | | homeowners have encountered severe financial |
| the way, and this is why automobile insurance can | | | | loss because they assumed they were covered |
| be considered broad in nature. | | | | for flood damages when, in fact, they were not. |
| In the case of automobile insurance, the reason | | | | In addition to personal property insurance there |
| insurance is important is that it protects you from | | | | are other types of insurance as well. There are |
| having to pay damages in the event that you are | | | | policies that insure against lost wages should you |
| found at fault for the accident. Without automobile | | | | be injured; there are commercial policies used for |
| insurance, you might lose everything that you | | | | businesses; there are specialty policies used for |
| have, including future earnings in order to pay | | | | high-ticket items such as jewelry or art work. |
| these damages. Most consumers simply cannot | | | | Some might suggest that there is virtually nothing |
| afford to buy another vehicle for someone should | | | | that you cannot insure, but protecting yourself |
| they severely damage that person's automobile. | | | | and your assets against loss is one of the most |
| The same holds true for any medical costs that | | | | important reasons for having insurance. |
| might be associated with an accident wherein you | | | | |