What Are Some Different Types of Insurance?
Different types of insurance include life insurance, health insurance, automobile insurance and homeowners insurance, explains U.S. News and World Report. The types of insurance a person needs depend upon an individual’s circumstance, such as owning a car or obtaining a home loan.
If a person owns a house and there is a bank loan on the title, the bank requires that the person obtain homeowners insurance, states U.S. News and World Report. Banks do not allow individuals to go without homeowners insurance for any length of time when there is a lien on the title. There is no way out of homeowners insurance unless the person pays the mortgage in full.
Most states require that drivers carry some type of automobile insurance, such as minimum liability insurance or full-coverage insurance, according to the Insurance Information Institute. The District of Columbia and 49 states require minimum liability insurance. New Hampshire is the only state that does not require liability insurance. However, drivers in New Hampshire must prove they possess sufficient funds to cover damages from an “at-fault” accident. Other types of insurance include disability insurance in the event a person suffers an injury and can no longer work or umbrella insurance that covers any amount not protected by liability insurance.
