Having basic insurance coverage is important for everyone, especially families, as a way of protecting your assets in the event of an accident or other type of damaging situation. You should ensure that you have adequate insurance coverage for your particular needs, knowing this will provide you and your family with peace of mind that you’re protected against the unexpected.

An Insurance Policy of Every Kind

You can probably find an insurance policy to cover just about anything. Some policies, however, are more deserving than others to have a place in your insurance portfolio. It’s a waste of money to buy every type of insurance policy available or to buy coverage you’re unlikely to ever need, and over-insuring yourself is almost as inappropriate as under-insuring.

It can be difficult to determine how much basic insurance you actually need, especially when it comes to considering liability coverage. What’s best is to get together with your trusted insurance agent, preferably an independent agent, to discuss the nature of your assets and how to best protect them. For liability protection, often the best solution is a one or two million dollar umbrella policy.

Four Primary Types of Insurance

As you’re considering your financial future, there are four primary types of basic insurance you should have in mind: health, life, property and vehicle. If you’re a business owner, you’ll likely also need to look into a business insurance policy. Here are some tips on how to avoid choosing the wrong insurance policy.

The first mistake you could make is choosing to save money by not having basic insurance coverage. Buying insurance is kind of like buying a fire extinguisher for your home or workplace. You buy it hoping to never need to use it, but if you wait until you actually need it you’ve waited too long. It’s definitely better to have and not need than to need and not have!

Some insurance you’re required to have, such as vehicle insurance if you drive on public roads and homeowner’s insurance if you’re buying a home with a mortgage. You’re subject to penalties for trying to avoid having these two insurance types in place.

Shop Around

You should shop around and get at least three quotes for your insurance policies and consider switching policies every year or two. An independent broker can help with this, doing most of the legwork for you.