Insurance can seem like a daunting and often unnecessary expense, but when disaster strikes, the right coverage can save you from financial ruin. From protecting your home and car to ensuring your health and livelihood, various types of insurance provide essential security.
This article explores 16 types of insurance that are worth considering to safeguard your financial future. Let's dive into the policies that offer real value.
Get instant access to hundreds of discounts
Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.
Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.
Home insurance: Dwelling coverage
/images/2023/01/30/hand-holding-house-model-while-writing.jpeg)
Dwelling coverage is the cornerstone of home insurance, protecting the physical structure of your home. It covers the cost of repairing or rebuilding your house if it's damaged by covered risks, such as vandalism, fire, or natural disasters. Ensuring that you don't have to pay out-of-pocket for extensive repairs is crucial.
Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.
Home insurance: Additional living expenses
/images/2022/09/02/handshake_between_a_client_and_real_estate_agent.jpg)
Home insurance doesn't just cover damage to your house. Additional living expenses (ALE) coverage helps pay for the extra costs of living elsewhere if your home becomes uninhabitable due to a covered event, such as a fire or severe storm.
This can include hotel bills, restaurant meals, and other necessary expenses incurred during the displacement period.
Home insurance: Other structures
/images/2023/04/13/estate_agent_and_customer_shaking_hands.jpg)
Your home insurance also covers other structures on your property, such as garages, sheds, and fences. This coverage ensures that any damage to these structures caused by a covered event is taken care of, helping you avoid costly repairs.
If you've added other structures to your property since initially buying home insurance, call your insurer to purchase additional coverage.
Resolve $10,000 or more of your debt
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1 <p>Clients who are able to stay with the program and get all their debt settled realize approximate savings of 46% before fees, or 25% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.</p>
Sign up for a free debt assessment here.
Home insurance: Liability coverage
/images/2023/02/14/homeowners_insurance_policy_and_model_of_home.jpg)
Liability coverage in home insurance protects you if someone gets injured on your property or if you accidentally cause damage to someone else's property. It can cover medical bills, legal fees, and any settlements, providing peace of mind and financial protection.
Home insurance: Personal property
/images/2022/09/20/real_estate_broker_agent_presenting.jpg)
This type of coverage ensures your personal belongings, such as furniture, clothing, and electronics, are protected against theft, fire, and other covered perils. Typically, this type of coverage is usually between 50% and 70%, but you can purchase more if needed. It helps you replace your possessions without bearing the full financial burden.
Trending Stories
Auto insurance: Liability coverage
/images/2024/07/16/cash-and-insurance-policy.jpg)
Auto liability coverage is essential for covering damages you cause to others in an accident. It includes bodily injury liability, which pays for the medical expenses of injured parties, and property damage liability, which covers the cost of repairs to others' property. It can also cover your legal expenses should you be sued due to a car accident.
Auto insurance: Uninsured/underinsured motorist coverage
/images/2024/07/16/agent-recording-car-damage-adobe.jpg)
This coverage protects you if you're involved in an accident with a driver who doesn't have sufficient insurance. It helps pay for your medical expenses, lost wages, and other car repair costs associated with the accident.
Auto insurance: Personal injury protection
/images/2023/03/02/customer_shake_hand_with_auto_insurance_agents.jpg)
Personal injury protection (PIP) covers medical expenses, lost wages, and other costs related to injuries sustained by you and your passengers in an accident, regardless of who is at fault. It's especially valuable in states with no-fault insurance laws.
Auto insurance: Comprehensive and collision damage
/images/2022/03/11/female_motorist_involved_in_car_accident_calling_insurance_company.jpg)
Comprehensive coverage pays for damage to your car from non-collision events like theft, vandalism, or natural disasters.
Collision coverage pays for repairs to your vehicle if you hit another car or object. Together, they provide extensive protection for your vehicle. It goes without saying that careful driving can help you avoid collisions and save money on car insurance.
Earn cash back on everyday purchases with a debit card
Want to earn cash back on your everyday purchases without using a credit card? With the Discover® Cashback Debit account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2 <p>See website for details.</p>
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
Learn more about the Discover Cashback Checking account
Health insurance
/images/2023/03/03/application_for_health_coverage.jpg)
Health insurance is crucial for covering medical expenses, including doctor visits, hospital stays, and prescription medications. Without it, health care costs can quickly become overwhelming, putting your financial stability at risk.
Renters insurance: Personal property coverage
/images/2024/07/16/renters_insurance.jpg)
Renters insurance provides personal property coverage, reimbursing you if your belongings are stolen or damaged by covered events like fire. It ensures you can replace your possessions without significant financial strain.
Renters insurance: Liability coverage
/images/2024/07/16/real_estate_agent_meeting.jpg)
Liability coverage within renters insurance protects you if you're held responsible for injuries to others or damage to their property. For instance, if a guest trips and falls in your apartment and it's your fault, this coverage can pay for their related medical expenses.
Umbrella insurance
/images/2023/09/26/hand-arranging-healthcare-blocks.jpeg)
Umbrella insurance provides additional liability coverage beyond the limits of your home, auto, or renters insurance. It's particularly useful if you face a major lawsuit, offering extra protection for your assets and savings.
Life insurance
/images/2024/06/21/indian-family-interested-in-life-insurance.jpg)
Life insurance comes in two main types: term and permanent. Term life insurance provides coverage for a specified period, while permanent life insurance offers lifelong protection. Both types ensure that your loved ones are financially secure in the event of your death.
Long-term care insurance
/images/2022/08/29/medical_concept_of_long_term_care_insurance.jpg)
Long-term care (LTC) insurance covers the cost of care services for individuals with chronic illnesses or disabilities. This includes assistance with daily activities such as bathing, dressing, and eating, whether provided via at-home care, in a nursing home, or at an adult day care.
Disability insurance
/images/2024/03/27/disabled-woman-on-the-phone.jpg)
Disability insurance provides income replacement if you're unable to work due to illness or injury. It helps cover your living expenses and maintain your financial stability during periods when you can't earn a paycheck.
Bottom line
/images/2024/07/16/broker_presenting_insurance_benefits.jpg)
Insurance can be a significant investment, but the peace of mind and financial protection it offers are invaluable. By carefully selecting the right types of coverage, you can safeguard your future and avoid potential financial pitfalls.
Have you considered all the insurance options that might benefit you? It's never too late to get started. Investing in the right insurance policies now can help you get ahead financially and eliminate some money stress down the road.
Up To 5% Cash Back
Discover it® Cash Back
Current Offer
Discover will match all the cash back you’ve earned at the end of your first year.
Annual Fee
$0
Rewards Rate
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
Benefits
- $0 annual fee
- Intro APR on purchases and balance transfers
Drawbacks
- Requires you to activate the highest-earning category each quarter
- Not accepted as widely overseas as Visa or Mastercard
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- Apply and you could get a decision in as little as 60 seconds. No annual fee.
- Start shopping and earning rewards in minutes with your digital card, before your physical card arrives in the mail, if eligible.
- Get a 0% intro APR for 15 months on purchases. Then 18.24% to 27.24% Standard Variable Purchase APR applies, based on credit worthiness.
- Terms and conditions apply.
Subscribe Today
Learn how to make an extra $200
Get vetted side hustles and proven ways to earn extra cash sent to your inbox.