Even if you do not own your residence, you are responsible for some of the problems that can arise there. Plus, you will need to protect your belongings, especially expensive items like furniture, electronics, jewelry, etc, against theft and damage. Renter's insurance provides coverage for your belongings and for liability that may result from an accident in your home. Many policies cover replacement cost, meaning that you will receive the money necessary to purchase a new item that is equivalent to the damaged one instead of a portion of that cost adjusted for depreciation. If you have roommates, you can take out a policy together and often save money while acquiring the same protection for your possessions.
Liability Insurance (and Umbrella Policies)
Liability insurance can fill in the gaps left by limits in auto and homeowner coverage when it comes to property damage and personal injury suits. Umbrella policies add to this coverage by protecting against certain civil claims that you may be faced with, and insuring property which is in your care but does not belong to you.
Travel insurance is available to cover you when unexpected events increase your travel costs. These may include medical and other emergency situations, cancellations, weather and even lost luggage.
Car Rental Insurance
Car rentals may be covered by your existing car insurance policy. You should always check your coverage before purchasing any additional coverage from a rental company. However, if you do not own a car or your current policy doesn't cover car rentals, purchasing insurance on a rental car is essential to protect you from liability.
There are several other types of policies which we have grouped together here because experts say most of them are unnecessary for most individuals. However, it's worth mentioning them briefly.
Mortgage protection insurance pays off your mortgage if you die. Life insurance is almost always a better way to prepare for this expense. Your mortgage is a consistently decreasing liability, meaning that insuring it is not in your best interest over time. Similar policies are available for outstanding credit card balances and other debts.
Flight insurance and other specialty policies protect against accidents under special circumstances. In almost all cases, a better value will be found by taking care of your needs in these situations with term life insurance.
Extended warranty insurance is available from many retailers who push it as a way to protect against problems with purchases once they are no longer covered by the manufacturer. These policies are usually unnecessary.
Kidnap and ransom insurance is designed for people who frequently travel to nations that may be hostile toward Americans and other foreigners. In the event that a kidnap situation occurs, costs like a negotiator and other expenses are covered. These policies are usually purchased by businesses.