| National Insurance Awareness Day Written by Brittany Harvey, Esq. Gilbert Garcia Group, P.A.
June 28th is National Insurance Awareness Day and thinking about insurance and the various types and coverages can be overwhelming. But having insurance coverage when emergencies strike can bring relief and assurance when you need it most. Although there are insurance policies that can cover just about anything (really, anything), it is recommended that everyone should have a policy covering five major areas: property, life, disability, health, and automobile.
Property Insurance – Policies that provide protection for your home and personal property in the event of a covered loss. If you’re a homeowner, it’s crucial to have this type of coverage in the event your home is damaged. This type of insurance is not required by law, however, if your lender requires it, you will need to have a policy covering the home. These policies can cover the home and repairs its parts, including the roof, plumbing, flooring, etc., as well as personal belongings and other assets inside the home. It’s best to discuss with an insurance agent the specific items you wish to have covered. If you rent a home, apartment, or condo, you may be required to purchase rental insurance, which covers your personal belongings in the event of a covered occurrence, such as flood, fire, or burglary.
Life Insurance – It’s the worst-case scenario that no one wants to think about, but if you ever are in the position of losing a loved one unexpectedly, having a safety net there can relieve some of the added stress. Life insurance pays a death benefit to a beneficiary after the death of the insured. There are two main types of life insurance: term and permanent. Term life insurance is a policy covering a set period of time and would pay a death benefit to the beneficiary if the insured dies during that set period. Permanent life insurance policies are in effect permanently as long as the policyholder continues to pay the premiums. Permanent life insurance policies are typically more expensive than term policies, which can provide more affordable options.
Disability Insurance – Disability insurance policies can provide a financial safety net for insureds who are experiencing either long-term or short-term disabilities and are not able to work. The main difference between the two is the length of the period of coverage. Short-term disability policies are meant to cover short absences, typically three to six months. These policies are great to have in the event of a pregnancy to help supplement income while out on maternity leave, as well as for recovery from an illness or injury that keeps you out of work. Long-term policies provide benefits for longer periods, typically measured in years, depending on the policy. These policies can supplement between 40-70% of your income while you’re unable to work due to illness or injury.
Health Insurance – Health insurance policies are designed to protect you from high medical costs typically associated with health care. However, these policies can also include free preventative care such as wellness visits, vaccines, and screenings for certain diseases/cancers. When picking a health insurance policy, it’s very important to know what kind of coverage is most important to you and your family. Those who have a chronic illness or disability may want more coverage to help with the added medical costs associated with their care, while others might not require more coverage than just wellness visits and emergency care. Health insurance policies can vary and have varying deductibles, so it’s important to do your research and discuss your options with a health insurance agent.
Automobile Insurance – If you drive a vehicle in the state of Florida, the Department of Highway Safety and Motor Vehicles requires drivers have proof of insurance with the following minimum coverages: $10,000.00 in Personal Injury Protection (PIP) and $10,000.00 in Property Damage Liability. The policy must be issued by a company licensed to do business in Florida. The minimum requirements are just that, and you can adjust the limit of liability for your policy according to your needs. In Florida, it is recommended drivers also carry some form of Under/Uninsured Motorist (UM) coverage, in the event you’re involved in a crash with someone who does not have insurance coverage. UM coverage protects you if you’re injured and the responsible party has the minimum coverage or no coverage at all, and with the record number of people moving to our beautiful state, it is imperative to ensure you and your family are protected. Sensing a theme here with worst case scenarios, insurance policies are meant to be there for us as a financial safety net in the event of an emergency. While some coverages like automobile insurance are required by law, it’s important to discuss your insurance needs with your family and obtain a policy to protect yourself, your family, and your property.
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