Recommended Insurance Coverage

Insurance for home , car and lifeThere are all different levels of insurance, from the minimum required by Texas State law to absolutely the best coverage that will protect you against just about any possible contingency. The recommended insurance coverage for different types of insurance usually falls somewhere in the middle. Listed below are some good levels of insurance coverage that are suitable for most people.

Automobile Insurance

The basic minimum coverage by state law is 30/60/25, which translates into $30,000 in liability coverage for physical injury you caused in an accident to one person or $60,000 for all occupants and $25,000 for property damage that was your fault. A more appropriate amount would be 100/300/50 because if you are in a serious accident, the damages could far exceed the minimum coverage amounts and you may be held personally liable for the difference.

Homeowners Insurance

Your home is probably your most valuable asset. It is prudent to get as complete coverage as possible, which is normally a HO-C policy. The HO-C is the most comprehensive of the standard homeowners policies and protects against most losses with full replacement value coverage. That is important, because it will allow you to get a brand new mattress equal to the cost of an equivalent mattress that might be 10 years old and that has only a fraction of the cash value of a new mattress. The HO-C policy costs a little more but covers just about everything except those specifically excluded in the policy.

Life Insurance

Term life is a much better value for your dollar than whole life coverage. Term life is strictly insurance coverage, while whole life has a savings component to it that does not warrant the much higher cost than term. Recommended coverage would be about 10 times your annual income.