Different Types of Temporary Insurance Coverage

Temporary insurance can help you meet the legal requirements to carry coverage while you arrange a more permanent loss protection contract. Many people are tempted into the mistake of going uninsured for a short period of time to save money. While this may seem like a good idea, you will end up in a high-stress situation in case of a catastrophic claim. It is better to aim for affordable coverage in the mean time even if you do not plan on making claims. You may need temporary insurance while you are renting and not at home, if you are in between jobs, or if you are traveling.

Renter's Insurance

Renter's insurance is one of the most over-looked insurance policies in the United States. While there are a number of renters in any metropolitan area, very few of these individuals have insurance to cover their belongings. Of course, your landlord should have property insurance to cover the actual building you are in. However, these policies will not truly cover your personal assets inside the building while you are renting. Many renters are young people, and they may not have a lot of high priced items to insure. Nonetheless, losing all your property, expensive or not, without insurance would be devastating. Most home insurance companies offer renter's lines. These are typically very affordable. You will need to list expensive items separately on the policy; be sure to take photos of those items and file them with the insurer or off-premise to protect them from being destroyed.

Extension of Health Benefits

If you have lost your job or need to leave your job for specific reasons, you may be eligible for an extension of health benefits under law. The most common option for this is COBRA. COBRA benefits can last up to 12 months from the "qualifying event." A qualifying event is whatever happened for you to lose employment. People who choose not to use COBRA usually do so because of the expense. Without an employer reimbursing your policy, it can be very costly. However, if you were laid off from your position, the government may partially cover the expense of COBRA benefits. You will need to fill out a separate form with your employer. Ask your representative about this option to discover up to a 60% premium reduction.

Traveler's Insurance

You need coverage when you travel, especially if you are in a foreign country or engaging in risky activities. It is surprising how many travelers go on ski trips, SCUBA diving or bungee jumping without traveler's insurance. You may simply not be covered in case of a tragic accident, theft or even if your flight is cancelled. Traveler's insurance is fairly inexpensive, and you can even purchase family or yearly policies to protect you on multiple trips. Students studying abroad can elect a line of coverage for this; there is even backpackers traveler's insurance. You wouldn't go uninsured at home, close by your doctors and your preferred hospitals. Why consider going uninsured when you are unfamiliar with the medical facilities?

 

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