The three most common types of insurance

There are many insurance plans available that offer coverage for various types of damages or accidents. All families must have at least one of these three.

Types of Homeowners Policies

Homeowners insurance falls into one of six categories. HO-1 and HO-2, as they are more commonly known, cover only property against specifically listed damages. These policies vary in terms of the damages covered and none protect the belongings located on the property. HO-2 forms offer more coverage than HO-1.

HO-3 protects against all types of damage, not just the damage specifically listed. It also protects a select list of belongings located within the structure from specific damages.

HO-4 and HO-6 cover only belongings. Renters use these policies since the owner or management company has coverage on the home. As with HO-1 and HO-2, HO-6 offers greater protection than HO-4 and is more expensive.

HO-5 is similar to HO-3 in that it covers property and personal belongings. The difference is that HO-5 covers all belongings, not just a few. It is also more expensive than some of the others, but it is worth it.

Types of medical options

Health insurance is another common form of insurance, and as with homeowners, there are different types for you or your employer to choose from.

The Health Maintenance Organization, or HMO, is one of the most widely used types. This plan allows you to choose from a network of providers and also includes preventive care. However, you must be referred by your primary care physician to see a specialist. There is also a small copayment that you must pay at each appointment.

The Preferred Provider Organization, or PPO, also has a network of doctors available. Unlike an HMO, you do not have to choose a primary care provider. You can see any doctor, or even a specialist, as long as you are in the network. Also, you don’t need a referral to change your doctor. As with other plans, each visit requires a copayment.

The Exclusive Provider Organization, or EPO, works in much the same way as HMOs and PPOs. These cost less and have a network of providers available. However, unlike a PPO, where an out-of-network doctor visit is covered to some extent, there is no out-of-network coverage for these plans.

The Point of Service Plan, or POS, is a hybrid between an HMO and a PPO. POS requires a primary care provider assignment, but you can see out-of-network doctors if you’re willing to pay a higher copayment.

Different car coverage

Car insurance is also widely used. Depending on your loan terms and state requirements, some options may not be available to you.

Liability plans cover damages and medical bills in the event the accident is deemed your fault. It only covers damage caused to the other person’s property, as well as any of their medical bills. Most states require this as minimum coverage. It is also the cheapest option available.

Collision coverage will pay for repairs to your vehicle in the event of an accident. It is worth having this type of insurance, in addition to liability coverage, even if you have an older vehicle that has no link. In the event that your vehicle is totaled, your plan covers the value of your automobile. This policy is necessary for those with rights holders.

Comprehensive coverage covers everything that is not related to an accident, such as if your vehicle is stolen or if you run over a deer. For most creditors, this is a requirement.

The uninsured motorist is something everyone should consider. While most states require at least liability coverage, some drivers don’t stick with the plans long after they get their license or plates. This policy protects you in the event someone else causes damage and you don’t have a plan to pay for the repairs.

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