Health insurance plays an important role in providing access to healthcare. However, recent changes in policies and regulations have impacted insurance coverage rates and market stability.
Homeowners should understand their policies and coverage limits in order to avoid surprises. For example, it is crucial to analyze policy exclusions, which often exclude damage caused by natural disasters or electrical surges.
Health Insurance
Health insurance, also called medical or health care coverage, helps pay for health care expenses. It generally requires that you pay a monthly rate, or premium, in exchange for coverage of your health care costs up to the limits set in your policy. You may also have to pay deductibles and copayments — out-of-pocket expenses that you have to meet before the health insurance company begins to pay for your claims. Health insurance is complex and confusing, with many terms used in specialized ways. Chapter 3 presents data that help to clarify some of the complexity, including how and why people with different characteristics have different chances of being uninsured. It also synthesizes existing information about the characteristics of people who are uninsured and reveals how their chances of being without coverage change over time.
Home Insurance
Homeowners insurance provides a safety net for the biggest investment most people make in their lives. It’s a form of property insurance that covers damages to the structure and personal belongings, and it can also pay for liability claims when the homeowner is at fault for incidents that occur on the property.
Home insurance policies come in many varieties, but the basics are similar across the board: dwelling coverage, personal property coverage and loss of use coverage. The type of coverage you choose depends on what kind of protection you want and how much you’re willing to spend.
Dwelling coverage pays to repair or replace the structure of your house, garage, shed and other detached structures on your property. It also covers the cost of living elsewhere if your home is uninhabitable after an event covered by the policy. You can buy this coverage up to a certain amount, typically set at 80% of your home’s market value.
Personal property coverage pays for your clothing, furniture, electronics and appliances that aren’t built into the house. It generally includes a specified limit of coverage and a deductible, which is the amount you are required to pay before the insurance company starts covering your losses. It’s important to conduct a home inventory and consider how much this kind of coverage is enough for you.
Finally, loss of use coverage pays for the expense of staying in a hotel or other accommodation when you can’t live in your home because of damage caused by an event covered by the policy. It’s important to talk with your agent about the specifics of this coverage because the limit and deductible options vary between insurers.
As with auto insurance, homeowners insurance is offered in a competitive market. Your application is approved or denied based on your credit, location, coverage limits, claim history and other factors. It is illegal for any insurer to discriminate on the basis of race, color, religion, national origin, sex, age, sexual orientation, marital status or disability when providing, renewing or cancelling home insurance.
Auto Insurance
Auto insurance is required by law in most states and provides financial security in the event of an accident or other incident involving your vehicle. It may be confusing to navigate all of the options and premiums, but an experienced agent can work with you to help you understand your policy and choose the coverage that meets your needs.
A basic policy typically includes six core coverage options: bodily injury liability, property damage liability, collision, comprehensive, uninsured motorist and underinsured motorist. Bodily injury liability covers medical expenses and lost wages for the policyholder and their passengers in an accident. Property damage liability covers costs associated with the repair or replacement of a vehicle in an accident. Collision covers the cost of repairs to a car after an impact with another object or with a stationary object like a light post or tree. Comprehensive covers damages related to non-collision incidents such as animal strikes, theft, fire and vandalism. Uninsured motorist coverage helps pay for accidents that involve drivers who do not have auto insurance or whose coverage isn’t enough to cover all of the damages.
Each coverage type has its own limits and deductibles. You can choose a higher or lower deductible to increase or decrease your premium. It’s important to consider the balance between premium savings and out-of-pocket expense when choosing your deductible.
Some factors that can influence your premium include your age, driving record and location. The make, model and year of your vehicle can also affect your premium, as can safety features and whether you have a good credit score.
The minimum requirements for auto insurance vary by state, but most drivers choose to have more than just the minimum coverages. This additional protection can be helpful in the event of an accident that requires large sums of money to cover medical bills, property damage and legal fees. The experienced professionals at your local Farm Bureau can help you determine how much coverage you need and assist you in obtaining it. They can also answer any questions you have about underwriting and rating. Underwriting refers to the process by which an insurance company sorts applicants into groups based on their risk and then decides whether to accept, reject or limit coverage for each group. Rating refers to the way an insurer calculates your actual premium based on their experience with each group.
