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Special Types of Insurance

We’ve all heard of car, health, life, and home insurance, but the insurance world has a lot more to offer. We’ll explain a few specialty types of insurance here.

Long-Term Care

One type of specialty protection is long-term care. As Americans live longer and longer, more elderly citizens are finding themselves in need of assistance with the activities of daily living (eating, bathing, dressing, etc.) due to old age or mental or physical illness. This type of policy will help you pay for these services should you need them in the future. Some policies have long-term care provisions that allow you to use a portion of your policy’s death benefits for long-term care purposes if you wish. The downside of this is that it does diminish the proceeds of the plan that your beneficiaries will receive. If you want to avoid this, you can purchase a standalone plan.

Disability

If you were to become temporarily or permanently disabled, you could stand to lose substantial income unless you have disability protection. This type of plan pays an injured policyholder income when he/she is unable to work due to an injury or illness. There are two primary types of disability insurance: short-term and long-term disability. Short-term plans have a waiting period of 0-14 days and a maximum benefit period of two years. Long-term options have waiting periods that range from a few weeks to several months and have maximum benefit periods of a few years to life.

Flood

Typical coverage for homeowners does not cover flood damage, so you would need to invest in a policy separately to protect yourself from this kind of damage. This is especially important in Florida because it is prone to hurricanes that can quickly bring devastating floods. You can get coverage from the government that covers up to $250,000 for the structure of your home and up to $100,000 for your possessions. Keep in mind that government protection provides replacement value protection for the structure of your home, but only actual cash value coverage for your possessions. Actual cash value factors in the depreciation of your belongings over time.

Motorcycle

Just like car insurance, certain levels of motorcycle coverage are required to drive legally in the state. This type of plan protects your motorcycle in the event of collision and provides liability protection in the event that you damage or injure another party. As with an auto policy, you can also purchase comprehensive coverage on your motorcycle plan, which will protect your bike from theft, vandalism, fire, etc. Florida motorcycle insurance tends to be a bit cheaper than auto insurance in general.