There are many kinds of insurance; each of the basic types of insurance described below was developed to address a specific type or combination of risks:

Property – includes the loss to real (estate) property, such as your home or personal property, which includes things like jewelry, electronic equipment and even your car.

Liability – includes losses that you may be held financially responsible or liable for when there is harm caused to another. That harm could be bodily injury, property damage or other forms of damage or injury where money is sought as compensation.

Life – provides financial protection against the risk and costs of premature death. These risks and costs range from burial expenses to loss of the income earned by the deceased. There are many types of life insurance that have developed to meet these needs.

Health – provides protection from the financial consequences of illness or injury, such as hospital and medical expenses. As with life insurance, there are many variations of health insurance, including disability, accident and even workers’ compensation insurance.

Combination Policies that “twist” together more than one of the basic types of insurance described above have been developed to meet specific needs, particularly as they relate to personal insurance needs.

Automobile Insurance – combines property damage for your vehicle with liability coverage for damage you may cause to another person’s vehicle or bodily harm you may cause to another person. It even includes an element of health insurance in the form of medical payments coverage or, in some states, personal injury protection coverage.

Homeowners Insurance – combines coverage for real (estate) property losses and personal property losses with coverage for liability losses for personal injury to others or damage to others' property. As with automobile insurance, there is even a medical payments coverage to pay for bodily injury to others.

The remainder of this workbook section will focus on various kinds of insurance related to your purchase of a vehicle or home; namely, Automobile Insurance and Homeowners Insurance. For more information on Life and Health insurance, visit the National Association of Insurance Commissioners (NAIC) website called Insure U (www.insureuonline.org).