What Types of Personal Insurance Do You and Your Family Need?

Posted by Matt Simon on Apr 27, 2018

Protect Your Most Important Assets With Personal Coverage that Matches Exactly What You Need


The first time you get an insurance policy can be confusing and overwhelming. Even if you’re signing up for a new type of coverage, the process of getting personal insurance can feel like it’s all going over your head.

Whenever you make a significant decision in your life — from buying a house to getting your child a car — it’s crucial to obtain the right policy to protect your assets. Personal insurance is designed for personal or family use and can cover expenses due to damage, injury, illness, or death.

One of the biggest questions that people often have about personal insurance is how much it’s going to cost. No one is ever happy about the idea of adding another bill to their monthly mail cycle, but the price isn’t typically as bad as you may think. The downside is that you can’t just go online and see what your price will be like you might do with other purchases.

The cost of your premium is entirely dependent on your specific situation, and no two are going to be the same. Your premium will be affected by where you live, how many people are in your family, your age, and more depending on the type of policy you’re interested in.

What you can do, however, is be aware of how your situation will likely impact your insurance policy to help you understand where the number is coming from, and potentially, what you can do to bring that cost down. For example, making an effort to drive safely can help you have a less expensive payment.

Working with an independent insurance advisor can also help you find a policy that fits your financial situation because they’re able to provide a wider variety of options from several carriers rather than just one.

Don’t Drive Uninsured! Personal Auto Insurance Will Make Sure You’re Covered

Not all states mandate auto insurance, but most require you to have an auto insurance policy to operate your car. Not only is it a good idea to carry auto insurance, but it can also help you out of a jam financially if something happens.


At a minimum, personal auto insurance covers damage to your vehicle and bodily injury experienced while operating the vehicle. How much it covers depends on your policy. Just like any other policy, more coverage means a higher premium, so you’ll be paying more each month.

Several factors will affect your policy. Here are a few to consider:
  • Where you live — a rural, suburban, or city environment
  • Your age — typically when you reach age 25, your premium will go down
  • The type of car you drive — luxury cars will drive costs up
  • Your driving record — a history of accidents means you’ll be shelling out more cash
Auto insurance is available nationwide and through many carriers, so it’s important to understand your options and what’s available so you know you’re getting the best price. And the cheapest option might not be the best option, either. While your payment might be low, if you actually run into an issue where you have to make a claim and your insurance doesn’t cover it or a majority of it, you’re going to wish you had paid a little more each month.

Different carriers offer different discounts, and there a number of ways that you can save money on your policy besides looking for the cheapest option. Every insurer offers something different, so recognizing how you drive and how much coverage you need will help you get the best policy.

How to Find the Best Price for Homeowners Insurance

Another key personal insurance policy is one that covers your home. Unlike auto insurance, homeowners insurance isn’t legally required, but if you have a mortgage, your lender will likely require it.

Homeowners insurance is going to protect the structure of your home and the important things that you have inside of it. From damage to theft, your homeowners policy can protect you if something goes wrong, but don’t assume that it will cover any and all damage that occurs to your home.

For example, in Ohio, the typical homeowners policy doesn’t cover major natural disasters like floods or earthquakes. You’ll need to have a separate policy for those. The factors that you’ll want to keep in mind in regard to the cost of your homeowners insurance are:
  • Where you live — the crime in your area could mean higher costs
  • The types of disasters that your area is prone to
  • The age of your home — older homes will need more coverage because they’re more susceptible to damage and costly to repair
The average cost for homeowners insurance in Ohio is cheaper than the national average because our state typically isn’t subject to many natural disasters. However, there are still several things that can impact your policy, and an independent insurance advisor can help you find the right personal insurance policy for your needs.

What You Need to Know About Renters Insurance in Ohio

If you’re currently renting, renters insurance is another option. This is another policy that isn’t required by law, but it may be required by your landlord or property manager. It’s also a good idea to carry renters insurance because you’re living in a shared space with more risk involved for your personal belongings.

Renters insurance covers the things that you own, such as furniture and clothing, and liability if you’re sued by someone who was injured on your premises. Essentially, renters insurance is a homeowners policy without the coverage for the structure of the building you’re in. It’s an easy policy to obtain, and your coverage will typically be for the total worth of your possessions. One thing to note is if you have a dog, specifically a known aggressive breed like a pit bull or rottweiler, renters insurance might be difficult to obtain or more expensive.

Unfortunately, renters insurance is often overlooked even though it’s a highly valuable policy to have, especially if you’re a young adult living in your first apartment. Less than half of people renting in Ohio said they had renters insurance. Don’t think that your landlord’s coverage will be sufficient for you if something happens, because this is not the case.

If you’re on the fence, think about what would happen if you lost everything. You’ve spent time building up your belongings, so imagine the cost if you were to replace everything altogether. That might not be an expense you can afford. The other benefit of renters insurance is that if your living space suddenly becomes uninhabitable due to something like a fire or tornado, some policies will provide coverage for a place to stay while you look for somewhere new to live. Plus, with an average annual premium cost of $200, it’s an easy policy to afford, even when you’re just starting out.

What are the Best Options for Umbrella Insurance?

As you get older, the number of insurance policies you have typically starts to grow, but your needs also change. They may reach the point where your auto or homeowners policy might not be able to offer all the coverage that you need, even at the highest level. This is where umbrella insurance can help.

Umbrella insurance policies are typically sold in increments of $1 million and are designed to fill in the gaps where your initial policies fall short. This coverage can be used to protect you and your family in the event of severe damage, injury, or other costs like lawsuits. Umbrella insurance is a form of liability coverage, and while you might think your existing policies are enough, it can come in handy when the unthinkable happens.

For example, if you or someone in your family causes a serious auto accident injuring a family of four, the coverage provided by your auto policy might be maxed out pretty quickly while leaving several hundred thousand to be paid to those injured — meaning you’re on the hook for that amount. An umbrella policy is designed to pick up the rest, so you never have to worry.

In regards to cost, umbrella insurance is misunderstood. While these policies start at a million dollars in coverage, your monthly bill could be less than $20, making it a huge bang for your buck.

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