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What Are the Different Types of Comprehensive Insurance?

By K. Kinsella
Updated May 17, 2024
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Comprehensive insurance policies protect the financial interests of policy holders in a variety of different situations. Individuals and businesses can buy comprehensive policies to ensure property including real estate and vehicles. Insurance firms in many nations also sell comprehensive health and life insurance policies although most policies include some standard exclusions and policy holders often have to pay deductibles.

A basic automobile insurance policy usually protects the insured from financial loss in the event that an individual sues the insured for causing damage to another vehicle. Other policies only provide the policy holder with a payout if the vehicle incurs damage as a result of a specific event such as a fire or an act of vandalism. A comprehensive insurance policy provides the automobile owner with coverage that covers the cost of damage that the car may sustain in a wide variety of situations. Additionally, these policies typically cover medical bills that the insured or other parties incur as the result of a motor accident.

Typically, a property owner cannot finance a piece of real estate that has not been insured. However, a basic policy only covers the amount of the outstanding loan balance which means that the owner ends up with nothing if the home is destroyed. Many basic policies do not protect homeowners against damage caused by certain kinds of events such as floods or owner negligence. A comprehensive insurance policy provides a business or residential property owner with protection in a variety of different situations and may even include liability coverage that covers the homeowner's costs in the event that an individual sues the owner for injuries sustained while at the property.

In some countries, the national government operates a national health service that provides citizens with comprehensive health coverage. Tax revenues cover the cost of operating the program although citizens sometimes have to make small co-payments for doctor or hospital visits. In countries without national health schemes, some private insurance companies offer comprehensive health insurance coverage. Nevertheless, insurers normally have the right to deny coverage to individuals who are suffering from certain types of illnesses or medical conditions.

Insurance firms in many nations sell term life policies which provide the beneficiaries with limited coverage in the event that the insured dies. Some firms sell comprehensive insurance policies that provide the plan beneficiaries with a payment that is designed to cover the insured’s total debt obligations as well as providing the beneficiaries with some income after the insured dies. As with health insurers, life insurance providers normally include certain provisions in a contract which prevent the firm from having to make a payout if the policy holder commits suicide or dies while undertaking a high risk venture.

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