Insurance is a necessity for everyone. Whether you are just starting out on your own, married, or living the single life. Having the right insurance coverage allows you the peace of mind to know that your assets are protected. Insurance is a means to protect yourself and your assets in the event of an unforeseen event that could otherwise ruin your financial security.
The primary purpose of insurance, is to transfer the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals. Insurance companies do this in order to prevent the cost of a loss falling solely on the responsibility of the individual who suffered the loss.
Nobody hopes they have to use their insurance, and nobody likes paying for it. Having insurance is a necessity that you need to have in your budget, and you will be glad if you ever need it.
Basic Terms and Definitions
Premium – The amount of money you pay an Insurance company to provide you with an Insurance Policy. Insurance premiums vary depending on various factors. An individual’s premium can be impacted by their credit score, insurance score, claims made, accidents and violations. Gaps in coverage and failure to pay policy installments can also have an impact on your premium.
Deductible – In property and casualty insurance, a deductible is a dollar amount the insured must pay on a claim before an insurance policy provides coverage. A higher deductible on an insurance policy results in a higher premium paid by the insured.
Declarations - The section of an insurance policy containing the basic underwriting information, such as the insured's name, address, amount of coverage and premiums, and a description of insured locations, as well as any supplemental representations by the insured.
Claim - A demand made by the insured to cover a loss protected by the insurance policy.
Car Insurance
Liability Coverage – This type of coverage is used to cover another person’s expenses in the event of an incident that is your fault. Liability coverage can vary but it is typically displayed on your policy as $50,000/ $100,000 / $50,000. What this means is that your policy provides up to $50,000 of coverage for bodily injury per person, $100,000 of coverage for bodily injury per accident, and $50,000 of coverage for property damage per accident. The state minimum required coverage for Auto insurance in the state of Texas is $30,000/$60,000/$25,000.
Comprehensive Coverage – This type of coverage covers the insured in the event of a covered loss. In auto insurance it covers losses from fire, theft, vandalism, falling objects, etc.
Collision Coverage – This type of coverage pays for losses to a covered auto that result from collision with another object or overturn
Renter’s and Homeowners Insurance
Do you live in an apartment, or rent a home from a landlord? Did you know that your landlord most likely has an insurance policy that covers the structure you are living in but does not provide coverage for your personal items if they get destroyed or stolen? Renters insurance is very affordable and ranges between 15-30$ a month and can cover your personal items in the event of a loss.
Did you live in a home that you own or recently purchased? Home owners insurance is a necessity to protect your home and the financial equity you are building. Home owners insurance is more expensive than renters insurance because of the nature of the protection it provides. Homeowners insurance can protect the rebuilding cost of the asset if it is completely destroyed and can also provide additional coverage for personal property, liability, and additional living expenses.
Personal Property – This coverage is used to repair or replace personal items within your home that are not considered part of the home such as furniture, electronics, clothing, etc.
Liability – Protects you against another person’s medical bills for at fault injuries on your property.
Additional Living Expenses – Provides coverage against an increase in normal living expenses while the premise is unfit for normal use while repairs are being completed.
Get the Coverage You Really Need
At McLemore Insurance Group our mission is to provide clarity and understanding of Property and Casualty Insurance products while providing our customers and community with quality service providing assurance that their assets are protected. We are here to create individualized solutions to provide the best possible coverage for you and your family at a price that works for you. We have a long list of providers that offer various rates and coverages that allows us to find the best solution for your current situation.
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