Miscellaneous Insurance Policies
There are numerous other types of policies available depending on an individual’s needs. There are life insurance policies that come in a variety of forms. There are the permanent and term type of policies, but then you also have policies that insure specific areas of your life. You might have one that covers your mortgage, or a policy that will cover the payments on your credit card bills if you become unemployed or disabled. Many people purchase life insurance coverage every time they fly in an airplane. Others have life insurance coverage for specific debts. You do not really need all of these various types of policies if you purchase adequate amounts of life insurance to cover all of your family’s needs. By allowing one policy to provide totally for your family, you will find that you can save a great deal of money and still know that everything will be fine financially if something happens to you.
If you own a boat, you would have a boat policy to cover any accidents or property damage. The same would be true if you were to own a motorcycle or an airplane. Each type of policy meets the needs of a particular group of people.
Some of the more common miscellaneous policies are:
Personal Umbrella Policies provide additional liability coverage over and above what you already have on your existing policies. Many people like to know that they are well protected in the case of a lawsuit and have found that the cost is minimal considering the peace of mind it provides.
Personal Article Policies insure specific items that you own so that you will be fully reimbursed for them should theft, loss, or damage occur. An example of this would be a diamond ring that may be worth many thousands of dollars. Although there is most likely jewelry coverage provided on your homeowner’s policy, it is probably limited to a $1,000 or $1,500 total loss for jewelry. This would mean that if all of your jewelry were stolen at one time, you would only be reimbursed up to the amount on your policy, regardless of your actual loss. Personal Article Policies require a recent bill of sale or written appraisal to list items for coverage. The cost, again, is minimal compared to the risk you are taking should anything happen to your property. This type of policy should also be used for any type of collectibles you may acquire, or any item that has exceptional value. The only way to insure that you are protected against the loss of any unique and expensive property is to have it listed on this policy so that you have total coverage for the item. Many of these policies are even inflation-adjusted on a regular basis.
When thinking of items to list on your Personal Articles Policy, consider family heirlooms, furniture, china, grandfather clocks, etc. Take an hour to walk through your home slowly and review what items actually require this additional coverage. Should anything ever happen to them, you will be very glad you did this.