How to Understand Your Homeowners and Auto Insurance Coverage

Step-by-Step Guide

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   Step 1: Know your coverages: Insurance coverages are typically broken down into two categories whether you are talking about home

   Liability protects your assets (all that you own) in the event that you are responsible for damage to a person or that person's assets and you are sued.
   
   Property coverage protects the items that you own (home, auto, etc) in the event that they are damaged by what is called a "Covered Peril".
   
   Peril is an insurance word for "something that could cause damage" such as fire, wind, etc.
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   Step 2: auto or commercial policies: those are liability coverage and property coverage.

   A good rule of thumb is that your liability limits on both your home and your auto should never be lower than the total of your assets, plus several years of your current salary.
   
   If you were to have an auto accident, and not have enough liability to pay for a medical or property claim, in most states a judgment can be issued against your wages for several years.
   
   This is money that is taken out before you ever receive your paycheck. , You can find out how well a company ranks in terms of how well they pay their claims, how strong they are financially, and how proficient their servicing staff performs. (see links below)
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   Step 3: Do an assessment of your financial state: If you own a home and have a job

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   Step 4: you have a lot to lose

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   Step 5: and therefore

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   Step 6: more to protect.

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   Step 7: Do your homework: Most insurance companies are rated on both their history and their future.

Detailed Guide

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