What is personal property insurance on a homeowner insurance policy?

Personal property insurance coverage is most often listed on the homeowners insurance policy as “Coverage C”. Personal property coverage is a separate limit of insurance from the building coverage on the home itself.

Personal property includes all your “stuff” including tables, chairs, clothes, dishes, electronics, jewelry, art work, etc. However, it is important to understand that certain types of personal property like electronics, jewelry, and art work have special sub-limits that limit coverage. It is important to be aware of these sub-limits and make sure that each meets your unique need.

What is the difference between comp and collision coverage?

Comp (a.k.a Comprehensive or Other Than Collision) and Collision are physical damage insurance coverages on a personal or business auto insurance policy.

Collision coverage provides reimbursement for damage to your vehicle after you’ve been in a car accident in which there is no fault or you are at-fault. Comp provides reimbursement for a set of named perils that include, fire, hit an animal, falling object, car get’s struck by lightning and more.

Comp will often be provided in conjunction with full glass coverage but is technically a separate part of the auto insurance policy.

Comp (a.k.a Comprehensive or Other Than Collision) and Collision

The quick and easy answer to this is yes. You should have more insurance coverage than the state mandated minimum auto coverages.

But it all depends on your interpretation of what insurance is for. If you believe that insurance is in place to protect you for your “Worst Day” than the state minimum auto coverage is never going to protect you against that “Worst Day.”

I can’t tell you what level of insurance coverage you should have but I can tell you that the state minimum insurance coverage will not properly protect you in the event something horrible happens.

Should I package my home and auto insurance with the same insurance carrier?

Absolutely YES! If you can package your home and auto together with the same insurance carrier you should do it. Plus You can get Huge Discounts.

What is the difference between universal and whole life insurance?

Universal life insurance and whole life insurance are both considered to be permanent life insurance products. However, there are very distinct differences between the two types of life insurance.

Whole life insurance is a much safer product in that most whole life policies have a guaranteed premium which gets you a fixed death benefit and cash value that grows at fixed, guaranteed rate. However you will pay more for whole life and you are restricted in when you cash in the cash value.

Universal life insurance is much more flexible. You can change the death benefit the premium you pay and the interest in the cash value account grows at an amount subject to market conditions (there is usually a guaranteed minimum though). You can actually not make payments if you have sufficient cash value in which to draw off.

How much life insurance should I buy?

You could ask ten different insurance professional how much life insurance should I buy and you would get ten different answers. The most common reasons for purchasing life insurance include coverage of debt, specifically a mortgage, replacing lost income for survivors and making sure there are funds available for education of children.

How you actually determine how much life insurance you need is really a personal decision. What I recommend is you find a life insurance agent you can trust, and have an honest discussion about what you hope to cover with your life insurance and what your financial capabilities are and make your decision from there.

Life Insurance

Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can also be included in the benefits.

Auto Insurance

It is the insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions.

Health insurance

It is the insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care and health system expenses, among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity.

Home insurance

It is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.