The ABC’s of comprehensive insurance
Ever wondered what comprehensive insurance is all about? It may sound daunting but, it’s an important concept that all insurance policyholders should understand. Whether you’re looking for insurance quotes or reviewing the coverage you have in place, it’s essential to know the details when it comes to comprehensive insurance. Let’s dive in.
Defining comprehensive insurance
Comprehensive insurance is a type of insurance coverage that protects you against damages from events other than those specifically listed in your basic policy. This can include incidents like theft, vandalism, fire, or natural disasters such as floods and earthquakes. It’s the safety net that catches you when life throws unexpected challenges your way.
The difference between basic and comprehensive insurance
While basic insurance covers specified incidents outlined in your policy, comprehensive insurance covers a broader range of unforeseen events. For example, if a flood (an event typically not covered by basic home insurance) damages your house, comprehensive insurance would kick in. But if your house or vehicle suffers damage due to a fire (an event typically covered by basic insurance), your basic policy would cover it.
Comprehensive insurance covers you for all direct physical losses except those specifically excluded in your policy. Some examples of basic exclusions are war or mould. Basic insurance on the other hand lists specifically what you’re covered for. Examples of losses you’d be covered for are under a basic policy are fire, lightning, explosion, and hail.
Why do you need comprehensive insurance?
Imagine waking up one morning to find your house damaged by a fallen tree during a storm, your business vandalized, or your vehicle colliding with an animal. Without comprehensive insurance, you’d be responsible for all repair costs. With comprehensive insurance, however, you’ll only be responsible for your deductible, potentially saving you a significant amount of money.
Understanding your deductible
A deductible is the amount you agree to “self-insure” before your insurance would respond. If your property suffers $10,000 in damages due to a covered event and your deductible is $1,000, you’ll pay the first $1,000, and your insurance will cover the remaining $9,000. Choosing the right deductible involves balancing your budget with your potential risk.
For more information on deductibles, check out our blog on how home insurance deductibles work.
Is comprehensive insurance mandatory?
Comprehensive insurance is typically optional unless required by your lender. However, considering the extensive protection it offers against various unexpected events, it’s a coverage worth considering. A Westland Insurance advisor can explore coverage options and find the balance of expenses and coverage that best suits your needs.
Comprehensive insurance at Westland
At Westland Insurance, we offer comprehensive insurance products tailored to fit your unique needs. We believe in providing our clients with robust coverage that protects them when needed. Understanding the ins and outs of comprehensive insurance can save you from significant financial distress in unforeseen incidents. We’re here to guide you through the process and help you make the best decision for your circumstances.
Ready to learn more about how comprehensive insurance can provide peace of mind? Connect with us or if you’re ready to get started on a quote, click below.