6 Insurance Policies You May Need and Not Have

You probably already have homeowners and auto insurance. But there are many other types of policies that can help safeguard you and your family from unforeseen financial disasters. Speaking to a qualified insurance agent and reviewing your coverage and personal circumstances is a prudent course of action to help ensure that you and your family have adequate protection. Here are some often-overlooked common types of coverage that can make recovery easier in the event of an insured loss:

1. Flood insurance. Many mistakenly assume that flood damage is covered under a traditional homeowners insurance policy. Sadly, it is not, and the worst way to learn this is after a flood. Speak to a qualified insurance agent to find out if your home might be vulnerable to floods and how to obtain coverage through FEMA to help protect to.

2. Disability insurance. Sometimes this is available as a benefit through your employer. But if it isn’t, you can still purchase private coverage that will pay should you become disabled and unable to work.

3. Personal umbrella policy. Did you know that you can purchase additional coverage that picks up where your homeowners and auto policies leave off? A personal umbrella policy might be a wise choice, especially if you have a lot of assets. You can often purchase $1 million or more of additional coverage at a relatively inexpensive rate.

4. Unemployment insurance. While most are familiar with the government-sponsored program, you can also purchase insurance privately that could help pay the mortgage for a period of time should you unexpectedly lose your job. Coverage such as this can provide extra security, especially in an uncertain job market, and when you have dependents to support.

5. Long-term care insurance. Many mistakenly assume that Medicare will pay for assisted living, nursing home or private care should you become incapacitated as a result of old age or a chronic medical condition. Medicare limits coverage for such care, usually restricting it to a short period of time after a hospitalization. The type of care that many Americans require as they age is typically excluded and requires coverage under long-term care policy.

6. Riders for excluded items. You might assume that all of your belongings are covered under your homeowners insurance policy in the of event of theft, fire or some other loss. However, certain types of items are often excluded depending on your policy, such as artwork, musical instruments, jewelry, guns, cash and certain electronics. Depending on your policy, you might need to take out riders to specifically cover such items. You should speak to your insurance agent to see what is and is not covered under your policy.

The worst time to find out that you lack the coverage you need is after disaster strikes. Be proactive and take the time to review your current policies — and purchase the insurance you need to protect what matters most.