What Are Some Common Types of Insurance Policies?

What Are Some Common Types of Insurance Policies?

Common types of insurance policies include homeowner's insurance, renter's insurance and car insurance, according to Forbes. Valuables insurance and umbrella insurance are other common types of insurance policies.

Types of damages covered by homeowner's insurance include theft and damage by wind or fire. Homeowner's insurance also covers injuries that occur on the homeowner's property. Damage from some disasters, such as earthquakes or floods, may not be covered, so those in high-risk areas should seek out additional policies, suggests Forbes.

Renter's insurance covers destruction or loss of possessions, states Forbes. Some landlords require tenants to have renter's insurance, and it is usually relatively inexpensive. Renter's insurance also covers injuries that take place on the rented property.

In most states in America, car insurance is required, notes Forbes. Basic policies cover injury and property damage to the other person or vehicle when the policy holder is at fault in an accident. Other options include personal injury protection, collision coverage and comprehensive coverage, which covers vehicle damages unrelated to an accident.

Valuables insurance covers precious valuables such as jewelry or other priceless belongings that are not covered by renter's or homeowner's insurance, states Forbes. Umbrella insurance protects the policyholder's future livelihood. Future earnings, savings and the home are assets that may be protected from being lost due to injury or other unforeseen circumstances.