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INSURANCE TYPES
Insurance is a means of managing risk. The most common risk most people try to protect against is the financial risk that can through a variety of situations.
Insurance is generally classified into one of four area; property & casulaty, professional malpractice & liabilty, medical and life & disabilty. Speciality insurance can also be obtained to protect against other items that does not fall into these categories such as travel insurance or insurance that models obtain on the looks. These specility insurance however all provide a way of managing risk that may result in lost time or money. Also umbrella policies can cover shortages in more than one area and should be investigated on top of the normal coverages purchased. Areas of vulnerability where coverages are categorized include:
Property & Casuality Insurance
Property and casulaity insurance can include home insurance, auto insurance, boat, business property and renter's insurance. It is used to protect real property and assets from theft, accidents or destruction. It protects these assets from these forms of loss and from the liability of damages occuring from the use of these assets. These insurance policys also offer different options
Collision - protects against physical damage to the vehicle by another car or object
Bodily Injury - protection against injuring or killing someone while operating the vehicle
Comprehensive - protects agains physical damage that is caused by non collision means (theft, fire & vandalism
Medical Payments / No Fault - pays medical expenses for driver, passangers and pedestrians
Uninsured Motorist - protects you and passangers against damage caused by motorist that is legally required to have insurance but does not
HO-1 - Basic homeowners covers homes and possesions against 11 perils
HO-2 - Broad coverage covers homes and possesions against 17 perils
HO-3 - Specific Coverage covers homes and possesions against all except listed
HO-4 - Renter's Policy, includes protection against 17 perils and liability
HO-5 - Extensive homeowners which covers everything except earthquakes, floods and wars
HO-6- Personal property coverage, liability and specific coverage for improvements
Professional Malpractice & Liability
Malpractice and liability includes such insurannce types such as Errors and Omissions (E&O) and is to provide compensation to others for damage to their property or their person should you be found legally responsible. Doctors, lawyers, consultants and other professionals who perform professional services are the main purchasers of this insurance however even if you do not work in one of these industries you should have sufficient coverage to protect against acusations of injury, libel, slander and other personal liabilities
Medical
Medical insurance can include health, dental and the newly popular Long Term Care Insurance. Options can include ways to protect for major medical risks to everday expenses. Unlike life insurance which involves the risk of dying too soon, Long Term Care insurance (LTC) is used to protect living too long
Health insurance plans generally fall into one of two categories: indemnity plans (also known as reimbursement plans) and managed care plans such as health maintenance organizations (HMOs), preferred provider organizations (PPOs), and point of service (POS) plans.
Life & Disability
Life insurance and disability protect against the possibility of dying or being disabled before ones time. This protects the loss of earnings that one would potentially earn.
Life insurance includes types such as whole, term, variable.
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