The following is a guest post. If interested in submitting a guest post, please read my guest posting policy and then contact me.
1. Natural Disaster Supplements
Your homeowner’s insurance will pay out if for damage from basic accidents, some weather damage, theft or burglary, vandalism, and from judgments against you if sued when somebody is injured on your property. This leads many to believe their homes are covered from all accidents, but this just isn’t so. If a particular kind of natural catastrophe is common in your area – such as a hurricane in Florida or an earthquake in California – your policy will likely specifically exclude damage from that kind of disaster.
Since natural catastrophes can completely destroy your home and everything inside it, you should get coverage that will pay out under those circumstances. In some cases, you can get a rider on your existing policy, from your current insurer, or from a company that specializes in disaster coverage. In areas where those options aren’t available, the federal government usually offers some kind of protection at a reasonable cost.
2. Disability Coverage
Life insurance takes care of your family if you can’t earn a living because you’re dead, which is why most working people have some kind of life policy in place, but death isn’t the only way to lose your ability to earn. Injury or serious illness can also leave you unable to work. Disability insurance protects you by paying a portion of your wages while you recover.
Disability insurance comes in two forms. Long-term disability starts paying several weeks after you’ve become disabled, and continues paying for a long time – either for a set number of months, or through the duration of your disability. Short-term disability insurance pays a benefit from the time you run out of paid sick time and when the long-term coverage picks up. Both are valuable, but long-term coverage is the more important option if you have to choose just one.
3. Life Coverage For Non-Working Spouses
It’s easy to see why people feel they can skip this kind of coverage. A working spouse provides money for the household. If she dies, the family must pay their bills, keep up with the mortgage, eat, and find the money to retrain the surviving spouse to be able to earn a living. With the working spouse still surviving, the emotional hardship isn’t compounded by that crushing economic reality.
But a nonworking spouse saves his partner money with child care, meal preparation, running errands and hundreds of small other tasks. The family breadwinner will either have to pay an assistant to take care of those things – or earn less when taking time off to handle those responsibilities. Compassion is also a factor here, as bereavement leave rarely lasts long enough for a grieving spouse to recover enough to work effectively.
Author Bio: Before writing full-time, Jason owned and managed businesses in the martial arts, fitness, restaurant and insurance industries. He now blogs for businesses seeking promotion and readers seeking knowledge he learned the hard way.
Grayson @ Debt RoundUp says
I need to go back and look at my home owners policy to see what it actually covers. They continue to raise the price each and every year, along with every company around here, so I need to make sure I am getting what I am paying for.
BTW – the link in the author bio is including some HTML elements. Just thought I would let you know.
Jason says
You can save a bit by switching sometimes, since the new guy might offer a discount to get your business…and of course there’s the multiple line discounts….
John S @ Frugal Rules says
Good points! My in-laws live in San Diego and have to buy separate earthquake insurance for their house. Disability insurance is one that way too many people overlook and can really be a great help if the need arises.
Jason says
My wife is lucky enough to get disability through her work, and it included childbirth leave. Which is good, because she had severe complications that put her out of work for six months…
snarkfinance says
All good points. Particularly disability coverage. On a side note, Volcano Insurance is hot right now, particularly because you are such a handsome man and/or beautiful women. Touche, salesman.
Michelle says
I went through my coverage yesterday and looked to see what it covered and priced out competitors. I’m currently with the lowest price that has the most coverage. Other companies wanted over twice as much for the same thing!
Tony@WeOnlyDoThisOnce says
Great points, and clearly explained. Thanks so much for this. Great post!
Jason says
Much obliged. Thanks for the kind words.
The Norwegian Girl says
I am definitely getting a disability insurance, after I`ve seen my mom worked until she couldn`t, only to realise that the insurance she had through a worker`s union wasn`t all that. so I`m getting a disability insurance when I finish college.
Edward Antrobus says
I’m outside of any flood plains, too close to the mountains for tornadoes, and close enough to town to not need to worry about forest fires.
Darnell Jackson says
Rental car replacement.
If you ever get into a wreck and you don’t have rental car coverage you’re screwed until they repair your car which could be months.
Jason says
Oooh! Good point! I don’t have it myself, because the wife and I each have a car and I work from home. I could limp along without one if necessary.
But if you’ve just got the one, it’s essential.
Alan@escapingmydebt says
Hi Jason,
I had a question regarding the home insurance. I was aware that, in states like Florida or in the Midwest, there were specific riders you could add for natural disasters that were more likely to happen. But what if you live in a state where those are not typical, like hurricanes or tornadoes, do regular home policies cover against those without a rider?
Jeremy Norton says
I have the first two in my insurance coverage but I am not sure with the third one. I’ll check it out tomorrow if the third one is there.
Alberta says
A good reminder to people who missed applying for these insurance policies especially the disability coverage. It will definitely fit for everyone particularly for breadwinners.