There are so many types of insurance in the world. You can buy lottery insurance, bed bug insurance, and there’s even alien abduction insurance. Some insurance types that are a little more common here in Texas are farm, crop, flood, renters, and boat.
Farm and ranch insurance is a mix of coverage meant to protect you both personally and commercially. Much like a standard homeowners policy, farm insurance will cover your home, possessions, and personal liability. It also includes coverage for your machinery and livestock, but not your crops.
Crop insurance is insurance that is there to protect farmers from risks that arise in agriculture. The risks must be beyond the control of farmers. Crop insurance has clearly identified risks, such as lack of rainfall. The outcome of such risk factors must lead to an adverse economic impact. The relationship between the risks and the loss must be clear and irrefutable.
For example, if crop insurance is taken to protect against the negative effects of rainfall, then it must be possible to show that the negative yield is because of a drop in rainfall or whether there are other factors at play as well.
Flood insurance is a separate policy designed to help protect your home and belongings if they are damaged in a flood. Standard property insurance policies, such as homeowners insurance, typically do not cover flood damage. Sometimes your clients may be required to have flood insurance. If they own a home on land that is at high risk of flooding, their mortgage lender may require them to purchase flood insurance. Flood insurance is generally available to people in communities that participate in the National Flood Insurance Program
Renter’s insurance is property insurance that provides coverage for the renter’s belongings, liabilities, and possibly living expenses in case of a loss event. It is available to the person renting or subletting a single-family home, apartment, duplex, condo, studio, loft, or townhouse. Purchasing this policy will protect against losses to the renter’s personal property that is on the rented property. Renter’s insurance policies also can protect against losses resulting from liability claims, such as injuries occurring on the premises that are not due to a structural problem with the property.
Boat insurance covers loss or damage to your client’s boat. It covers most watercraft with motors, including fishing boats, pontoon boats, paddle boats, leisure crafts, and yachts. Boat insurance does not usually cover canoes, kayaks, or personal watercraft. Small watercraft may have limited coverage under a homeowners policy. You may also be able to add a special endorsement or buy separate coverage.
At 2021 Training we will help you understand all of these insurance types as well as other not-so-common insurances. It is important to know about the different types of insurance to be able to offer your clients the best possible options.
If you’re ready to start the most transformative year of your career, we’re ready to help. We have all the online courses you need to prepare for your licensing exam. Our courses are taught by experienced professionals who can give you a unique look inside what it takes to be an adjuster. Get started today with our new adjuster bundles. With 2021 Training, you can develop your skills and become a leader in one of today’s most exciting industries.