Types of insurance

Any risk that can be quantified can potentially be insured. Specific kinds of risk that may

give rise to claims are known as "perils". An insurance policy will set out in detail which

perils are covered by the policy and which are not. Below are (non-exhaustive) lists of

the many different types of insurance that exist. A single policy may cover risks in one

or more of the categories set out below. For example, auto insurance would typically

cover both property risk (covering the risk of theft or damage to the car) and liability risk

(covering legal claims from causing an accident). A homeowner's insurance policy in

the U.S. typically includes property insurance covering damage to the home and the

owner's belongings, liability insurance covering certain legal claims against the owner,

and even a small amount of coverage for medical expenses of guests who are injured

on the owner's property.

Business insurance can be any kind of insurance that protects businesses against

risks. Some principal subtypes of business insurance are (a) the various kinds of

professional liability insurance, also called professional indemnity insurance, which are

discussed below under that name; and (b) the business owner's policy (BOP), which

bundles into one policy many of the kinds of coverage that a business owner needs, in

a way analogous to how homeowners insurance bundles the coverages that a

homeowner needs.[9]


Auto insurance
Main article: Vehicle insurance
A wrecked vehicle

Auto insurance protects you against financial loss if you have an accident. It is a

contract between you and the insurance company. You agree to pay the premium and

the insurance company agrees to pay your losses as defined in your policy. Auto

insurance provides property, liability and medical coverage:

1. Property coverage pays for damage to or theft of your car.
2. Liability coverage pays for your legal responsibility to others for bodily injury or

property damage.
3. Medical coverage pays for the cost of treating injuries, rehabilitation and

sometimes lost wages and funeral expenses.

An auto insurance policy comprises six kinds of coverage. Most countries require you

to buy some, but not all, of these coverages. If you're financing a car, your lender may

also have requirements. Most auto policies are for six months to a year.

In the United States, your insurance company should notify you by mail when it’s time to

renew the policy and to pay your premium. [10]
Home insurance
Main article: Home insurance

Home insurance provides compensation for damage or destruction of a home from

disasters. In some geographical areas, the standard insurances excludes certain types

of disasters, such as flood and earthquakes, that require additional coverage.

Maintenance-related problems are the homeowners' responsibility. The policy may

include inventory, or this can be bought as a separate policy, especially for people who

rent housing. In some countries, insurers offer a package which may include liability

and legal responsibility for injuries and property damage caused by members of the

household, including pets.[11]
Health
Main articles: Health insurance and Dental insurance
NHS Facility

Health insurance policies by the National Health Service in the United Kingdom (NHS)

or other publicly-funded health programs will cover the cost of medical treatments.

Dental insurance, like medical insurance, is coverage for individuals to protect them

against dental costs. In the U.S., dental insurance is often part of an employer's

benefits package, along with health insurance.