Insurance comes in all shapes and sizes


Insurance (Photo credit: Christopher S. Penn)

If it can be lost, stolen, broken or destroyed, you probably can insure it!

You’ve probably heard the bizarre stories of how body parts, exotic objects and downright weird gizmos can be insured for a healthy premium.

Insurance is available for just about anything — if you can associate a value to the loss, an insurer somewhere probably would agree to cover it.

Coverage comes in all forms, and policies issued by one company may contain subtle differences based on their underwriting rules, and based on the state governing the policy on which you’re requesting a quotation.

All policies include one or more of the following categories of coverage:

Property:  Protects against loss, theft, damage or destruction of a piece of property — a physical thing such as a car, home, ship, etc. Both auto and homeowners policies include some element of property insurance.

April 2, 2006 Tornado Outbreak, O'Fallon, Illi...

(Photo credit: Wikipedia)

Casualty: This insures against accidents, not necessarily tied to any particular property, however both homeowners and auto policies also contain an element of casualty loss coverage.

Liability: This covers situations in which you might be sued for damages because of some act for which you are held responsible. Auto, Homeowners and Business policies all contain liability coverage. Professional Indemnity coverage, as well.

Financial Loss: As its name implies, this type of policy protects you against a financial loss because of an unexpected event. Business, Travel, Health, Credit, Disability, Worker’s Compensation and Title policies all include elements of this type of coverage.

Life insurance is distinctly different from other policy types. In fact, the life insurance industry is subject to different laws and tax regulations. Annuities fall under life insurance.

When shopping for insurance, it pays to understand the various types of coverages and how they can be combined to afford you appropriate protection for your personal situation.

 Insurance Fundamentals 101 – Learn the basics about insurance fundamentals in a flash. Hear from a one of the nation’s top insurance advisors.