Personal insurance refers to any policy designed to protect the policyholder against unique risks. Examples of personal insurance policies include, among others, car insurance, homeowners insurance, health insurance, life insurance, disability insurance, renters insurance, and travel insurance. These policies protect the policyholder from financial losses associated with perils such as property damage, bodily injuries, lawsuits, and sickness.

What Does Personal Insurance Cover?

Different personal insurance policies cover other perils, situations, or events. The most common types of personal insurance coverage options include:

  • Homeowners Insurance - Studies have found that almost one-third of homes in the U.S. face the risk of natural calamities such as earthquakes, wildfires, and storms. If any of these disasters cause property damage, the homeowner will have to pay for the resulting losses out of pocket, which can jeopardize their finances. The good news is that homeowners insurance covers the losses related to property damage and liability costs, provided they result from named perils.

  • Auto Insurance - In case of an accident, this policy pays for any physical damage to the car. The auto insurance policy can also cover liability costs, personal injury, and towing expenses.

  • Health Insurance - If you're sick, health insurance will pay for medical expenses, including prescription drugs, hospital visits, medical devices, and wellness care.

  • Travel Insurance - Traveling is inherently risky. Common risks associated with travel include accidents, lost or damaged luggage, delays, medical emergencies, and trip cancellations. These risks can lead to huge losses, covered by travel insurance.

  • Life Insurance - The average traditional American funeral costs anything between $7,000 to $12,500. The hefty cost of funerals can leave a family financially destitute. Life insurance is designed to prevent such a situation. The policy covers funeral expenses and pays death benefits to the policyholder's dependents upon their demise.

  • Disability Insurance – About 25% of American adults have some disability. Worse still, chances of getting disabled increase with age, with seniors aged 65 and older being the most affected. The good news is that disability insurance will reimburse you a certain percentage of your pre-injury income for the time you remain disabled and unable to work.

  • Renters Insurance – This policy covers perils such as theft, vandalism, certain natural disasters, and third-party injuries that occur on the policyholder's rented property.

Who Needs Personal Insurance?

Anyone who cannot afford to lose their assets, savings, or source of income needs personal insurance. The type of coverage required depends on the kind of risks at hand. For instance, your insurance should include home and auto insurance coverages, respectively, if you own a home and a car. To determine the type of personal insurance you need, be sure to consult an insurance expert.

Contact our team of professionals at United Direct Insurance today for all your personal insurance needs. We are here to help you get the right insurance coverage to suit your unique needs.