Insurance can be very confusing, whether it is for your home or your car. There are different levels of coverage for all types of insurance, and it is important to know what they are and what they cover before you make a policy decision. Having the right insurance means that your items are properly covered in the event of an accident or other event.

What Does Comprehensive Insurance Cover for My Car?

Auto insurance can be very expensive, especially if you are paying for more coverage than you really need. For instance, if you have an older car without a lien and are maintaining full coverage, you are paying hundreds of dollars more in premiums than the car might actually be worth. Comprehensive auto insurance:

• Covers all events not typically covered by collision insurance
• Covers personal items that are inside of the car at the time of a loss, including clothing or other items
• Covers for fire, theft, flood or vandalism
• Covers for damages to the glass and may cover for damages to the finish
• Covers for damages incurred when you hit an animal. While technically a collision, this is usually not covered by other types of insurance.

What Does Comprehensive Insurance Cover for My Home?

As with auto insurance, there are several levels of coverage with home insurance that you should consider. The lower the cost of the insurance, the more exclusions there are likely to be. Comprehensive homeowner’s insurance:

• Is the most expensive level of homeowner’s insurance coverage
• Covers the cost of damages from fire, theft, vandalism and other criminal acts and some water damage, although most policies will restrict water damage caused by floods, forcing you to buy a secondary flood policy, especially if you are in a flood prone area
• Covers the home itself and the property within it
• May provide some coverage for people injured on your property
• May cover other items outside of your home, except your car, as long as they are listed on the original or amended policy

There are options in comprehensive home insurance; one policy covers the cost of replacing your home even if it exceeds the stated value of your policy. That type of coverage is not always available and may be even more expensive. The other only pays up to the stated amount, so it is important to know how to choose your coverage amount.

Additional Services You Can Add on to Comprehensive Insurance Policies

In addition to coverage for your home or auto, you can add in additional services, which may drive the cost up but are usually worth it in the long run. For your car, these include:

• Towing or roadside assistance
• Rental car while yours is being repaired

For your home, additional services might include:

• Cleaning and laundry service reimbursement
• Hotel accommodations or housing allowance while the home is being repaired
• Food vouchers
• Special services such as locksmith and others

While comprehensive insurance is very expensive, it is usually a better way to protect your home and your family.