5 Types of Insurance Policies Everyone Needs

The words "are you covered?" written in sand on the beach next to water

Not all insurance plans are required by law, but this doesn’t mean that they aren’t necessary. Here are five must-haves when it comes to protecting you and your family.


Auto Insurance. This is an easy one, given it’s the law in most states—and for a good reason! Driving around uninsured is always a bad idea, even if you’re just driving down the block. Make sure you’re signed up for adequate liability coverage—this will cover the cost of injuries and property damage in the event of an accident.

Property Insurance. This is homeowners or renters insurance. Whether you own a house, or rent, your home should be protected. Often, homeowners insurance will be built into your mortgage. But, if you’re a renter it is important to make sure the insurance is included in your rent. Often, it is something you need to opt-in to. Renter’s insurance is really designed to protect your property such as furniture and clothing from damage or theft within your rental. We’ve always called this “Your stuff” insurance.

Employer Health Insurance. Thankfully, many employers provide this insurance as part of your employee benefits package. Group Insurance through your employer is always going to be more cost-effective since you’re able to get a discounted, group rate for the entire business. Your health is important! It’s also something employers should be jazzed about offering as it could set your business apart as an attractive place to work compared to another business who does not offer these benefits.

Life Insurance. Life insurance is necessary if you have a family. Even single people can benefit from a term life insurance policy. It can pay for burial/funeral costs, lost income, college tuition for your children, and any debts you happen to leave behind. Some people even choose to opt for larger life insurance policies because they want to ensure that their remaining family is not put under any future burden.

Flood Insurance. I know, you don’t live in a flood zone. According to FEMA, more than 20 percent of flood claims come from properties outside the high risk flood zone. Flood damage is excluded, meaning not covered, by any homeowners insurance policy. The best way to think about water damage is that in most cases, if the water is leaking from above, that’s a homeowner’s insurance claim, likely the roof. If it’s coming in from below, that’s rising water or flood, which is only covered by a flood policy.

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