Today, we’re going to discuss the different types of insurance. This is by no mean an all-inclusive list. In fact, if you can think of something we missed, please leave a comment at the end of this post and let us know.
People can insure almost anything. I’ve heard strange stories of people insuring their luggage, their pets, their voice, their feet and countless other things. To each their own! Different things have different value to different people. Protecting what is valuable and important to you just makes sense!
In my opinion, insurance is a good thing. If nothing else, it can give you peace of mind.
The Different Types of Insurance
In the paragraphs below, I am going to share the different types of insurance that I could find online. This is by no means an all inclusive list; however, it is a good starting point with the different types of insurance you can purchase in the marketplace. They are listed in alphabetical order.
What I’ve done is cited different credible sources online, which give a definition of each type of insurance. I’ve also included a link to their website in case you want additional information.
# 1 Auto Insurance
If you lease or own a vehicle, you will want auto insurance. In most cases, it’s required by law.
Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
Source: Insurance Information Institute
# 2 Aviation Insurance
Own an airplane? I don’t yet, but it’s on my bucket list.
Aircraft insurance that provides liability and property coverage for aircraft. Aircraft insurance, also called aviation insurance, can be purchased for a number of different types of aircraft, including standard, experimental, and vintage aircraft, as well as seaplanes.
# 3 Boat Insurance
Own a jet ski or motor boat of some type. If so, you should educate yourself on boat insurance.
Boat insurance covers your watercraft in the event of damage, theft or any other unpredictable circumstance, depending on the insurer and level of coverage you choose.
# 4 Business Insurance
Are you an entrepreneur like I am? If so, make sure you protect yourself AND your business!
The term “business insurance” pertains to protecting against operational losses by a business. What type of loss is covered by a business insurance policy depends on the insurance company, the policy wording, and local limitations.
Source: Business Inqurance Quote
# 5 Commercial Property Insurance
If you own commercial property, you should learn more about commercial property insurance.
If there’s any chance of your commercial property being affected by theft, fire or natural disaster, expensive repair needs or even lost revenue – and there is definitely a chance of all of those things – then commercial property insurance is well worth considering. This type of coverage isn’t just commercial building insurance; it covers property such as heavy equipment, computers, raw materials, inventory, supplies, furniture, fixtures and more, whether you rent or own the workspace – it can even cover property left in the care of your business. Consider this type of coverage virtually essential if your location houses physical assets upon which your business’s revenue stream relies.
# 6 Dental Insurance
It’s pretty easy to take your gums and teeth for granted. However, make sure you take care of those pearly whites!
Dental insurance pays a portion of costs associated with preventive, minor, and some major dental care.
Source: United Health Care
# 7 Earthquake Insurance
Depending on where you live, earthquake insurance might be VERY important.
Earthquake insurance covers your home and personal belongings against seismic damage. It may also pay for your additional living expenses if earthquake damage forces you from your home for an extended period.
Source: Policy Genius
# 8 Flood Insurance
If you live near the water, or in a flood zone, this is something you should consider. In many cases, if you are still paying for the property, you will be required to have it.
Flood insurance protects a structure and its contents from water damage caused by a flood, which is technically defined as a temporary condition where two or more acres of normally dry land are inundated by water or mudflow. Homeowners insurance does not cover damages caused by a flood, so anyone with a home in an area susceptible to flooding should consider purchasing flood insurance.
Source: Value Penguin
# 9 Health Insurance
Your health is your wealth. I learned that a long time ago. This is something most people already have and something EVERYONE should have!
Health insurance is a type of insurance coverage that covers the cost of an insured individual’s medical and surgical expenses.
Source: Medical News Today
# 10 Home Owner’s Insurance
Own your home? Make sure you insure it in case something unexpected happens to it!
Homeowners’ insurance, also called home insurance, provides financial protection in the event that the homeowner’s house or its contents are damaged. It also provides protection in case the insured or her family are held liable for injuries to other people or damage to their possessions while they are on the property.
# 11 Identify Theft
We live in the digital age. Identify theft is becoming more and more common. I hope it doesn’t happen to you, but there is a pretty high likelihood that you will be an identify theft victim at some point in your life. Make sure you protect yourself.
Identity theft insurance is designed to cover some of the costs related to identity theft. It reimburses victims for money spent on reclaiming their financial identities and repairing their credit reports. Those costs can range from phone bills to legal help. Policies often provide specialists who can help guide victims through the identity restoration process.
Source: Life Lock
# 12 Kidnap and Ransom Insurance
I hope this never happens to you or any of your loved ones. If you are from a political family, wealthy family or famous family, this coverage is worth considering.
Kidnap and ransom insurance is a specialty crime coverage that protects against financial losses that arise when an insured is threatened with kidnap, extortion or illegal detention domestically or abroad.
Source: Insurance Business Asia
# 13 Life Insurance
We’re all going to die at some point in our life. The purpose of life insurance is to protect the loved ones you leave behind.
Life insurance is a type of insurance contract which pays out a lump sum to your dependents should you pass away during the term of the contract. The cost of a policy is determined by a number of factors including your age, health and lifestyle.
Source: Money Super Market
# 14 Long-Term Care Insurance
We all get older every single day of our lives. We will all get “old” one day. Hopefully, you will have the proper insurance to make sure you can live comfortably if you need to live in some type of assisted living facility.
By the time you reach 65, chances are about 50-50 that you’ll require paid long-term care (LTC) someday. If you pay out of pocket, you’ll spend $140,000 on average. Yet you probably haven’t planned for that financial risk. Only 7.2 million or so Americans have LTC insurance, which covers many of the costs of a nursing home, assisted living or in-home care — expenses that aren’t covered by Medicare. “Long-term care is the unsolved problem for so many people,” says Christine Benz, director of personal finance at Morningstar, an investment research firm in Chicago.
# 15 Motorcycle Insurance
Attention biker chicks and biker dudes! Make sure you insure your motorcycle.
Motorcycle insurance provides financial protection in the event of a motorcycle accident, loss, theft or damage. Motorcycle insurance includes liability coverage in case you are responsible for another person’s injuries or property damage. These policies provide coverage for motorcycles, choppers, fast street bikes or “crotch rockets,” mopeds, and even Segways.
Source: Trusted Choice
# 16 Pet Insurance
Got a pet that you just love? Consider protecting your cat, dog, bird or animal with the proper pet insurance.
Pet insurance (also known as pet health insurance) helps cover the cost of veterinary care if your pet becomes ill or injured. Some pet insurance plans also provide reimbursement for wellness procedures such as vaccinations, heartworm testing and spaying/neutering.
# 17 Renter’s Insurance
Do you rent? If so, you might want to consider renter’s insurance.
Simply put, renters insurance (sometimes called tenant insurance) is an insurance policy you pay for to help cover you and your belongings in the event of an incident, including anything from fire to theft. Usually your landlord’s insurance will cover repairs to the property itself—say, if there’s a leaking ceiling—but will not protect your own belongings (the TV and rug that were damaged because of the leak) or the cost of having to live elsewhere if you need to move out during repairs. (Legally, landlords are only responsible to their tenants if they were aware of unsafe conditions and didn’t repair them within a reasonable time frame.)
Source: Real Simple
# 18 Shipping Insurance
If you’re shipping something valuable, you might want to consider shipping insurance.
Shipping insurance is a service that reimburses some or all of the delivery fees and the value of a shipment should it becomes damaged or lost in transit. It can be a complimentary service included by default with shipping charges or as an additional charge through the carrier or a third-party insurance provider.
Source: Ship Station
# 19 Travel Insurance
If you’re traveling abroad on that much needed get away, this is something worth looking into. Also, if you travel for work, this might be worth considering.
Travel insurance could cover medical expenses, trip cancellation or delays, lost or stolen baggage and personal liability while you’re travelling. The type of cover you need will depend on the countries you’re visiting, the activities you’ll be doing and the length of your trip. You’ll also need to state whether you want travel insurance for a single trip, multiple trips or for backpacking.
Source: Compare the Market
# 20 Umbrella Insurance
If you own a home, have a business or just want to protect yourself with extra liability protection, you should explore an umbrella policy.
An umbrella policy is an insurance policy that provides extra liability insurance coverage. The coverage exceeds the limits of the insured’s car, boat, house, etc. An umbrella policy provides an extra layer of security to people who believe they are at risk of lawsuits resulting from damage to other people’s property. The insured also believes that he or she is at risk of lawsuits resulting from injuries in an accident.
Source: Market Business News
# 21 Vision Insurance
If you have your eyes and can still see, you may want to consider vision insurance.
The term “vision insurance” is commonly used to describe health and wellness plans designed to reduce your costs for routine preventive eye care (eye exams) and prescription eyewear (eyeglasses and contact lenses). Some vision plans also offer discounts on elective vision correction surgery, such as LASIK and PRK.
Source: All About Vision
# 22 Weather Insurance
If your business or livelihood can be affected by the weather, make sure you learn more about weather insurance.
Weather insurance is a type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable temperatures or other adverse, measurable weather conditions. Weather insurance is used to insure an expensive event that could be ruined by bad weather, like an outdoor wedding or an outdoor film production.
# 23 Worker’s Compensation Insurance
If you own a business, in most cases the law will require you to purchase this
Workers’ compensation insurance is a vital (and, unless you’re in Texas, legally mandated) part of your business.
Workers’ compensation, or workers’ comp, is an insurance program that provides benefits to workers who were injured or became ill on the job to make up for medical costs and lost wages while they were out of work.
Quite perhaps the best thing you can do right now is sit down with a licensed insurance agent and find out what types of insurance apply to your unique situation. Assess your situation, get a few different quotes and do what is best for you and your family. You might also want to consult with your CPA and attorney for any suggestions they might have.
There you have it folks. These are the different types of insurance I can think of. What did I forget? Leave a comment below to share your thoughts. I look forward to hearing from you.