Eight kinds of cover, explained before you are asked to choose

What it generally covers

• check_circle What you owe when the accident is your fault, which is the part almost every state requires
• check_circle Repair or replacement of your own vehicle, if you choose to carry it
• check_circle Theft, glass, hail, and the sort of weather that arrives without warning
• check_circle Optional extras such as roadside help, a rental car, or a newer car after a total loss

Where people get caught out

Deductables matter more than most people expect. A lower monthly figure with a larger deductible can be the better deal for someone who drives a lot and files nothing, and a poor one for a household that cannot absorb a large out-of-pocket amount.

What it generally covers

• check_circle The building itself, including attached structures and detached garages
• check_circle Your possessions, whether owned outright or still being paid for
• check_circle A place to stay if a covered event makes the house uninhabitable
• check_circle Your liability if a visitor is hurt, or if something you own causes damage elsewhere

Where people get caught out

The number that matters is what it would cost to rebuild, not what the house was bought for. And if you are in a flood-prone spot, that cover is usually a separate policy rather than a line inside the buildings cover.

What it generally covers

• check_circle Your possessions, which the building owner has no obligation to cover
• check_circle Your liability inside the building and where you are elsewhere
• check_circle A place to stay if fire or flooding makes the unit unlivable
• check_circle Optional help with identity theft, which is often bundled rather than built in

Where people get caught out

Cheap policies sometimes cap what they will pay for a single item, and for a laptop or a bicycle that cap can be the whole decision. Ask what the limit is per item and per category before you buy.

What it generally covers

• check_circle The building, and often the contents that belong to the owner rather than the tenant
• check_circle Lost rent if the property cannot be let while repairs happen
• check_circle Liability toward tenants, visitors, and anyone affected by the site
• check_circle Multi-property cover, so a small portfolio is not quoted one address at a time

Where people get caught out

Rental income cover usually has a waiting period built in. If a property could be empty at any point in the year, ask how long the cover waits before it starts paying.

What it generally covers

• check_circle Liability for injury, damage, or mistakes made while you are working
• check_circle The equipment, stock, and premises themselves
• check_circle Lost income if an insured event stops you trading
• check_circle Add-ons for professional work, online data exposure, and vehicles used on the job

Where people get caught out

The word matters here. A general liability policy responds to claims of injury or damage, and usually stops short of a claim that the work itself was done badly. If that is your exposure, ask specifically about professional cover.

What it generally covers

• check_circle Emergency treatment and hospital costs while you are away
• check_circle Trips cut short, delayed, or cancelled through no fault of yours
• check_circle Baggage that is lost, stolen, or arrives after you have landed
• check_circle Assistance with getting home if something goes badly wrong abroad

Where people get caught out

Check what counts as an insured reason to cancel. A change of mind is not one, and neither is your own illness, on most standard wording. Those exclusions surprise people more than the price does.

What it generally covers

• check_circle Unexpected treatment after an accident or an illness
• check_circle Procedures, tests, and medication that a vet recommends
• check_circle A share of the cost, usually chosen by you as a percentage or a fixed amount
• check_circle Optional extras such as dental work, behavioural treatment, or lost-pet help

Where people get caught out

Two details decide most pet policies: whether a waiting period applies to a new condition, and whether the condition existed before the cover started. Both are normal and both are readable if you look before you buy.

What it generally covers

• check_circle Extra liability on top of a policy that has already been exhausted
• check_circle Cover for claims made against you that your other policies cannot absorb
• check_circle Legal defence costs incurred early, before a liability figure has been agreed
• check_circle Sums that matter most where a car, a home, and a business meet

Where people get caught out

This one sits on top of something else. It is worth having if the most expensive thing you own is not fully covered by the policy on it, and largely pointless as a stand-alone purchase.