Getting Started
How to decide which types of insurance you actually need
Reviewed by Maria Navarrete-Collins
The short answer
Most households start with four building blocks: auto, home or renters, life, and liability. What you add beyond that depends on what you own, who depends on your income and the risks connected to how you work.
Who may need this coverage
- Anyone who drives, owns or rents a place to live
- People whose income supports a partner, children or parents
- Owners of land, equipment, rental property or a business
- Households with savings or home equity they want to protect
Why it matters
Coverage is easiest to understand when you look at it as one plan instead of separate policies. Reviewing everything together shows where limits are too low, where two policies overlap and where a gap has quietly opened.
Situations in which it may be needed
- Buying a first home or signing a first lease
- Adding a driver, a vehicle or a trailer
- Getting married, having a child or taking on shared debt
- Starting side work, a farm operation or a small business
Risks of being uninsured or underinsured
- Paying out of pocket for damage a policy could have addressed
- Liability claims that exceed the limits you selected
- A rebuild or replacement cost that outgrew your coverage limit
- Family members left without income support after a loss
What this coverage commonly helps protect
- Your vehicles and the people you are responsible for on the road
- Your home or belongings and the liability that comes with them
- Income your household depends on
- Savings and assets exposed to a lawsuit
What it may not cover
- Normal wear, maintenance and gradual deterioration
- Intentional damage or losses excluded by the policy
- Flood and earthquake, which usually require separate coverage
- Business activity under a personal policy in many cases
Questions to ask your agent
- Which limits are set at the minimum, and what would raising them cost?
- What is not covered on my current policies?
- Which discounts am I eligible for right now?
- How often should we review this together?
A practical checklist
- List everything you own that would be expensive to replace
- Write down who depends on your income
- Gather your current declarations pages
- Compare your liability limits to your savings and equity
- Schedule one review that covers every policy at once
Not sure how this applies to you?
Maria will review your current policies and explain your options in plain language, with no obligation.
Related questions
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Coverage descriptions are general educational summaries. Actual coverage, limits, conditions and exclusions depend on the issued policy and may vary by state. Contact a licensed insurance professional to review your specific needs.