What Are Some Common Types of Insurance?
- Property insurance protects the insured against the loss or damage of physical property. Homeowners insurance, renters' insurance and car insurance are all protect property and help to cover the cost of replacing or repairing physical property when damaged or stolen, such as houses, cars, clothing and furniture.
- Sometimes businesses and individuals may be legally liable, or responsible, for damaging someone else's property or for physically injuring another individual. Liability insurance offsets the cost of repairing or replacing someone else's property and may help pay another person's medical bills. Liability insurance can also help to pay litigation costs.
- Some policies have a cash value component, but the purpose behind all life insurance policies is basically the same. Life insurance policies pay a predetermined amount of money to a designated beneficiary when a person dies. This money can pay for the deceased's final expenses and to settle any debts owed by the deceased. Policies with large payouts are often purchased to help surviving spouses, children and business partners stay financially solvent after the loss of an individual who supported them or contributed to their financial well-being.