Home owner's insurance

Insurance Resources and Advice

Insurance is sometimes a legal requirement and often a good idea. Understand the different types of insurance, read company reviews, get help with claims, and learn how to save money on health, life, home, auto, and other types of coverage.

Insurance Basics

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Frequently Asked Questions
  • What does insurance mean?

    The premise of insurance is to transfer risk from one or more people, a business, or an entity to a group of insureds that pay premiums into a pool; it’s from this pool of premiums that losses from covered perils are paid. An insurance policy is a contract between an insurance company and at least one individual in which the insurer agrees to pay specified damages in exchange for a premium.

  • What are the benefits of insurance?

    Insurance can provide peace of mind when you don’t need it, and can be a financial life raft when you do. Health insurance, for example, covers costly possibly unaffordable, medical bills if you become ill or injured; auto insurance can pay to replace your totaled car; and life insurance can enable your family to survive without your income.

  • What are the 4 types of insurance you need?

    Auto, homeowners or renters insurance, health, and life insurance are some of the most important types of coverage. If you drive, you need auto insurance; if you rent or own, you’ll need renters or homeowners insurance. Health insurance protects you from having to pay for unaffordable medical procedures if you get hurt or sick. And life insurance is crucial if you have children or others who depend on you.

  • How do insurance companies make money?

    Insurance companies profit from premiums and also invest heavily in a range of financial securities, primarily consisting of bonds. Some state regulators evaluate investment returns to determine if insurance companies are charging consumers rates that are too high or low.

  • What are the 5 parts of an insurance policy?

    The five main parts of your policy are:

    • Declarations page: Lists your policy’s key details
    • Insuring agreements: What your insurer promises to do/not do and who/what is covered
    • Exclusions/limitations: What’s excluded from coverage and maximum claim payouts
    • Conditions: Requirements you must meet for coverage and claim payouts
    • Definitions: Defines common words with special meanings
  • What are the types of life insurance?

    The two main types are term and permanent. Term life insurance is valid for a set period of time, usually one to 30 years, and pays a death benefit only if you die within that time frame. Permanent life insurance is designed to last throughout your life and pays a death benefit as long as you have an active policy. Both term and permanent policies have additional types available as well.


  • What is an insurance quote?

    An insurance quote estimates the premium you'd pay for insurance coverage based on information you provide. A quote usually details policy specifics such as deductibles, coverage limits, riders, and the types of coverage offered. A quote is not an offer of insurance and your final premium may differ, depending on the additional information you provide on the application.

Key Terms

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