The 5 Basic Types of Personal Insurance

When most people think about personal insurance, they are likely thinking about one of these five major types, among others:

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1. Residential, such as home, condo or co-op, or renters insurance.

2. Car insurance and coverage for other vehicles such as motorcycles.

3. Boat insurance, which can be covered under home insurance in some circumstances, and stand-alone boat insurance for vessels of a certain speed or length that are not covered under home insurance.

4. Health insurance and life and disability insurance.

5. Liability insurance, which can fall into any of these groups. It covers you from being sued if another person has a loss that is your fault.
    

While you may be able to get some of your policies from one company, it's not a guarantee. Insurance requires licensing and is divided into groups. This means that before someone is legally allowed to sell it or provide you with advice, they must be licensed by the state to sell and give advice on the type you are buying.

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For instance, your home insurance broker or agent may tell you that they don't offer life or disability insurance. They may be able to refer you to an agent in their circle with the proper licensing to sell you a policy.