5 Types of Insurance a Millennial Should Have

When you’re trying to figure out how to budget your life, it seems like a no-brainer to lower or all together leave out insurance in order to save money. However, when push comes to shove, you’ll be glad you’re protected. A monthly payment may seem like a drain to your paycheck, but the alternative is an exorbitant bill down the line!

If you’re concerned about cost, the best money saver is shopping around, and if you are a client of Stromsoe Insurance Agency, you’ve already made one huge step towards savings! The beauty of using an independent insurance agency, is that we do the shopping around for you.

Here are the 5 types of insurance every millennial should have:

#1 Car Insurance

While car insurance is required, the amount of coverage you carry is a great deal up to you. There are 3 types of auto insurance:

  • Liability
  • Collision
  • Comprehensive

Liability is often the minimum insurance you need to be a legally insured driver, but collision and comprehensive are where you have some freedom. Collision involves coverage for repairs to your vehicle that need to be made as a result of a traffic accident, no matter who is at fault as well as property damage and any damage to the vehicle that is a result of collision with trees, buildings, etc. Comprehensive is coverage that includes replacement of the vehicle if it is stolen or damaged by natural disasters. While changing your collision and comprehensive can change your premium dramatically, it can also be the difference in your claims experience after an accident or theft.

Want to read more on how you can lower your car insurance premium? Check it out here.

 

#2 Renters/Homeowners Insurance

In short, tenants need insurance to cover their belongings. You, as a renter, will not own the building in which you live, and you are unlikely to insure that. On the other hand, the belongings inside your rental are likely important to you. One reason to have insurance for the tenants is to have protection for your personal property.

For example, renters could provide coverage in the event of:

  • A kitchen fire. A renters policy could help with the costs to replace items destroyed in the fire. If your place can’t be lived in while repairs are being done, renters insurance may also provide coverage for a place to stay, meals and related expenses.
  • A burglary. Renters insurance could help with the costs to replace the covered stolen items.
  • A guest falls and gets hurt. The personal liability coverage included in a renters policy could help with the payment of medical bills or other expenses related to the accident.

Take a look around before you decide you don’t have enough stuff to get lost in a fire, or what you have isn’t likely to get stolen. You might see more items that are costly to repair than you would expect. A smartphone, designer handbag, professional chef’s knife kit, new laptop are all widely used high-ticket pieces, for example, that you may have in your rental. How about antique china from your grandmother? Even the cost of replacing all of your clothes might cost you quite a dent.

 

#3 Flood Insurance

No home is entirely free from potential flooding. When a single inch of water in a home can cost more than $25,000 in damage, the difference between recovery and financial ruin can be flood insurance.

 

#4 Umbrella Insurance

Purchasing an umbrella policy is an inexpensive way to protect your financial future or established assets. Personal umbrella insurance kicks in when your base policy limit is not sufficient. It covers you beyond the limits of homeowners insurance, auto insurance, watercraft or other personal insurance policies.

 

#5 Life Insurance

Life insurance is about protecting the living and buys time and options when an income earner passes. If you have any dependents, life insurance will allow them to avoid making dramatic decisions while they may not be emotionally ready to do so effectively. Life insurance policies can be very affordable and give financial security to your loved ones should you no longer be around to provide it.

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