What are the most common types of insurance people overlook?

1. Disability Insurance
Disability insurance is often overlooked, despite its importance in protecting your income if you become unable to work due to illness or injury. Many people underestimate the likelihood of needing this coverage, not realising that common conditions like musculoskeletal disorders, cancer, pregnancy complications, and mental health issues are among the most frequent causes of long-term disability claims.
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2. Umbrella Liability Insurance
This type of insurance extends liability protection beyond standard home and auto policies. It's particularly important for those with higher net worth, as it protects assets and future income from potential lawsuits.
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3. Cyber Liability Insurance
With the increasing prevalence of data breaches, cyber liability insurance has become essential for businesses of all sizes. However, it's frequently overlooked, especially the third-party coverage aspect which protects against claims from customers affected by security breaches.
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4. Long-Term Care Insurance
As people age, the need for long-term care becomes more likely, yet many overlook this coverage. With the high costs of nursing homes and assisted living facilities, long-term care insurance can be crucial for protecting retirement savings.
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5. Business Interruption Coverage
For business owners, this type of insurance protects against financial losses due to unexpected disruptions like power outages. Many businesses fail to consider the full scope of coverage needed, such as funds for ongoing bills during repairs.
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6. Identity Theft Coverage
As the fastest-growing crime in America, identity theft protection is often overlooked. This coverage helps reimburse expenses related to restoring your identity if it's stolen.
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7. Flood Insurance
Many homeowners don't realize that standard homeowner's policies don't cover flood damage. Separate flood insurance is necessary, even for those not in flood-prone areas.
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8. Broadened Coverage for Expensive Items
Standard homeowner's policies often have limitations on coverage for high-value items like jewelry, collectibles, and fine art. Many people overlook the need for additional coverage for these items2
. By understanding these commonly overlooked insurance types, individuals and businesses can better assess their risk and ensure they have comprehensive coverage tailored to their specific needs.