What coverage is provided in each type of policy?
Your insurance policy gives the most complete and accurate description of what is covered, for what amounts and under what conditions. Coverage varies by type of policy, by insurer, by state, and by the coverage selections you made when you purchased the policy, so it is important to understand your policy at the time of purchase. The DCU Insurance staff would be happy to answer your questions about coverages.
At the DCU web site, StreetWise provides easy-to-understand, general explanations of the coverages provided under most automobile, homeowners, renters and umbrella policies.
What type and how much coverage do I need?
This is a very personal decision which, after satisfying any legal, regulatory or lender requirements, comes down to your tolerance for risk. To protect your financial well-being, you must balance the cost of insurance against what's at risk if you don't buy it, then decide how much of a loss you could absorb personally. Licensed DCU Insurance personnel can advise you about coverage, but in the end, you must make the decision.
What assets or possessions do you want to protect? What is their current value, and what would it cost to replace them? What would you need to do if your home or car were unusable for a period of time? How much could you afford to pay as a deductible (higher deductibles can often save you money on insurance premiums)?
An aspect of personal insurance often overlooked is liability coverage. If you are responsible for injury or financial loss to someone else, this is the coverage that is used to compensate them and/or to defend you against legal claims. Without sufficient liability coverage, your assets and even your future income stream could be at risk. Both auto and homeowners policies have a liability component. Supplemental liability coverage can be purchased in a personal umbrella policy.