These savings are covered by the types of insurance people most typically carry, such as homeowner's insurance and auto insurance -- nothing exotic.
Homeowner's Insurance Away From Home
Many people don't realize that your homeowner's insurance often covers your possessions, even if they aren't at your home. For example, if your luggage is stolen while on a trip, many policies cover about $500 of losses. If your child is a full-time college student and lives in a dorm -- not an off-campus apartment -- your homeowner's policy probably covers their personal possessions as well. And if you're out shopping and stash your purchases in your car, your car insurance doesn't cover them, but your homeowner's policy does. You'll need receipts as proof, so keep those with you when you go back in the mall for more shopping.
A Lawyer to Defend You
Homeowner's insurance and car insurance both pay to defend you if somebody sues you for something that's covered by the policy. Maybe a delivery guy trips on your front steps, or the other driver in a fender bender suddenly claims back pain. Be sure to check with your insurance company about coverage, because a legal defense is probably part of your policy.
Spoiled Food Because of an Outage
Many companies include coverage for spoiled food in your homeowner's policy, and others sell it as an additional benefit. Regardless, the power outage must have been caused by a covered "peril," like a windstorm that knocked power lines down or lightning that zapped your electricity or a fire that cut off power to your neighborhood.
People Who Borrow Your Car
You may not want to admit it because then you'll have to lend people your car, but as long as you give permission, people who borrow your car are covered by your auto insurance. You might assume that the driver's own car insurance policy would kick in, but the coverage is tied to the car. So the auto insurance for that car applies. You'll just have to pay your deductible – or get your friend to pay it.
Your Pet's Auto Injuries
And what if the friend who borrows your car takes your dog with them, and Fido gets hurt in an accident? Since most pets don't wear seatbelts, this is a very real concern and yes, your insurance may cover your pet's vet bills. It's not true of every policy in every state, but many auto policies will cover pet injuries up to a certain amount like $500 or $600.
In the current economic climate, nobody should make petty or repeated claims because many insurance companies will cancel you for that. But if you've suffered a major loss or you've never made a claim before, that's what insurance is for. Maybe you don't make a claim if a $300 laptop gets stolen from your kid's dorm room, but if it's a $3,000 laptop, then you do. Weigh the decision carefully.
In addition to making the most of your insurance by tapping into coverage you didn't know about, you may be able to cash in on little-known discounts you didn't know about. Here are several suggestions provided by Trusted Choice and the Independent Insurance Agents and Brokers of America.