If we're savvy and choose to take responsibility for our personal finances, we buy insurance -- for our homes, cars, health, and life. And while it might seem like you're spending a lot of money on nothing -- especially if your life is relatively claim-free -- it's good to remember that what you're really buying is protection: coverage for your assets, your income stream, your dependents, and more.
A common mistake, though, is to overestimate what your coverage really protects you from. All the risks that are excluded from prevalent insurance policies are spelled out in the fine print. But when's the last time you scoured your insurance documents?
Here are some examples to note so that you don't make a costly mistake assuming you're covered for a potential mishap.
Motley Fool contributor Selena Maranjian, whom you can follow on Twitter, holds no position in any company mentioned.
The Latest from our Partners
- People Who Retire Comfortably Avoid These Financial Advisor Mistake…
- Ready to Withdraw from Your Retirement Accounts? Do it in This Order
- 2020: How to Maximize Your Savings
- Refinance rates at 2.23% APR (15yr). Calculate your rate now
- Little-Known VA Option Could Save Veterans Thousands
- Simple Mortgage Math May Save You Thousands
- I got a $1 million life insurance policy before having a family. He…
- My work provides life insurance. I bought a private policy anyway.
- How Policygenius helps you get the cheapest life insurance online
- 4 cards to help you get out of debt in 2021
- $200 Sign Up Bonus to Start the New Year
- Your best credit card offers for January 2021
- Forget the 30yr mortgage if you owe less than $726k (Do this instea…
- How to pay off your house ASAP (So simple it's unbelievable)
- Congress Gives Veterans A Generous Mortgage Relief Program