Insurance – Are You As Covered As You Think You Are?

Insurance is one of the powerful protection tool and is constantly in the news, and it should have you wondering if you have enough coverage. People who went through Hurricane Katrina made headlines when insurance companies refused to pay for water from the storm surge. People with medical problems are denied treatment if they don’t have insurance, and there is the ever-present risk of being hit by a driver on the road without insurance. If you are wondering if you have the coverage you need, here are a few things you should consider.

Health Insurance

People should never go without health insurance, even if you are young and as “healthy as a horse.” According to the NPR, health experts are concerned about the rising number of uninsured Americans. One of the major reason for not protecting self from health related issues is, ignorance. Some of others may feel like they don’t need the coverage because they always stay healthy, but there are several reasons to invest in health insurance. The first is that, we never know when a major illness or accident might happen. The second is that, if we are diagnosed with a serious disease, the real help health insurance comes to picture.
Long-Term Care Insurance Nursing homes are incredibly expensive, and the only way to pay for them is to start selling off your estate. You may want the expensive artwork to go to your daughter and the antique sideboard to grace your son’s home, but those items will wind up being sold off to pay for your care. Medicaid won’t start paying until your estate has been exhausted, and they will look back in time to see if you’ve been giving money away to the family. With long-term care insurance, the insurance would pay for your care and preserve your estate for your heirs.

Homeowner’s Policies

You have a home policy and you make regular payments, but does it really have you covered? Thousands of people discovered that they were not covered after Katrina, and that left them devastated. Lawsuits were filed, but the courts agreed that the language was clear and the insurance companies were within their rights. If you live in an area prone to severe storms, then you must invest in flood insurance. It’s a small amount to pay for peace of mine.

Liability Coverage

This is the insurance that protects you if someone trips while on your property and breaks a leg. It also covers you if you cause an accident. It’s available through your homeowner’s and car insurance policies, and it’s incredibly important. Without this coverage, you could be sued personally for damages and wind up losing all of your assets. The liability levels on each policy should be enough to shelter all of your assets. You might also consider purchasing a blanket insurance policy worth a million dollars.

Uninsured Motorist

Even while you are making sure that you are fully covered, there are others out there who are trying to save money by refusing to pay for any insurance. They drive without insurance, and that leaves you at risk. Many insurance policies will not pay for damages caused by uninsured drivers. Fortunately, this type of coverage is very affordable, so you can easily add the protection to your policy. A surprising number of people discover the hard way that they didn’t have the coverage they thought they had. Financial experts recommend that you sit down with your agent and review your policies to be sure you have the coverage you will need. It’s the best way to avoid problems and eliminate nasty surprises down the road.

Deidra Clancy writes for where you can learn about liability and casualty insurance