What Types of Insurance Does Your Family Need?

by Stacy Francis, CFP®, CDFA

One of the moms from the park called me last night, in tears. Not only had she come back to her apartment to find the door ajar and her things all over the floor – when she got hold of the landlord, he informed her that his insurance policy only covers the building structure – not the renters’ personal property. So when her valuables were stolen she lost not only many dear memories, but the money invested in them as well. If you are one of the many people confused about insurance, below are the most common ones to consider.

  1. Renter’s insurance. Renter’s insurance is the one the mom from the park now wishes people had told her about. It covers the things inside your house or apartment when you are renting.
  2. Homeowner’s insurance. Homeowner’s insurance is usually mandatory if you take out a mortgage, and recommended either way. It is also important to note that your homeowner’s insurance needs to be updated when you make major changes or renovations.
  3. Health insurance. This is a complex one with a myriad of different options. Shop around to see what type and provider and coverage would be most beneficial for your family.
  4. Life insurance. Many employers supply their employees with this type of insurance. In case yours doesn’t or not enough insurance is provided, you need to purchase it on your own.
  5. Auto insurance. If you have teenagers who drive, it is generally cheaper to add them to your policy than to get them policies of their own. Make sure everyone who drives your car is covered.
  6. Disability insurance. This, too, may be provided by your employer (or your spouse’s), but you may also need to purchase it on your own as most employers do not provide enough coverage.

Depending on your unique circumstances, other types of insurance, too, may be beneficial for you. If you have your own business, you will need additional types. You may also want to insure art and other valuables.

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