Insurance: it's one product you purchase hoping you'll never have to use. Depending on where you live and what type of lifestyle you lead, you may need different types of insurance coverage to adequately protect you and/or your property from loss or damage. For instance, if you live in an area that is easily flooded, flood insurance is a wise choice. If you spend a good deal of time on the road, you may want to consider extended auto insurance to ensure recovery from damage.

While some types of insurance are similar from state to state, others may vary slightly according to a state's laws, policies and practices. In Nevada, all forms of insurance are regulated by the Department of Business and Industry, Division of Insurance (DOI) in Carson City. DOI is in charge of insurer solvency, market conduct, rate requests and for providing assistance and information to consumers.

Insurance Types

–Homeowner's Insurance

Regardless of your location, if you're a homebuyer, you need homeowner's insurance. A homeowner's insurance policy is actually several types of coverage combined for homeowners, condominium owners and renters.

A standard policy typically provides fire, lightning, windstorm, theft and liability coverages. Various types of "optional coverage" are then made available to tailor the policy to meet a homeowner's specific needs.

Under a typical policy, the first type of property to be covered is the main physical dwelling. In addition to living quarters, this includes structures such as attached and detached garages, additions, tool sheds and other similar buildings.

All homeowner's policy forms include liability coverage, which protects you in the event you are sued by someone who claims your negligence injured them or damaged their property. If a suit is filed, your insurance company covers the cost of your defense, whether you are found liable or not. If you are found liable, your insurer will pay damages assessed against you up to the liability coverage limits on your policy.

–Flood Insurance

When people think of Las Vegas, they don't immediately think of rain. Contrary to popular belief, it can and does rain in Las Vegas, and some areas of the valley are susceptible to flash flooding. In Nevada, flood insurance is excluded under standard homeowner and renter policies. However, flood insurance is available to all residents of Clark County and the incorporated cities within its boundaries, regardless of whether a property is located within a flood plain

For a single family home, $250,000 coverage for the structure and $100,000 coverage for contents is available. Policies covering damages to personal property are available to renters as well as homeowners.

If you're moving into a new home, apartment or a business location, make sure you have adequate coverage. Contact your insurance agent for more information on the potential flood risk to your property.

–Auto Insurance

Regardless of how safe you try to be on the road, it's impossible to predict the actions of other drivers. That's why auto insurance coverage is so important.

Private passenger auto insurance accounts for the largest percentage of property/casualty premiums written, followed by homeowners insurance at 11 percent. As part of the state's compulsory financial responsibility law, every motorist in Nevada is required to carry auto liability insurance. The minimum amount of liability insurance that satisfies Nevada law is:

            *           $15,000 for any one person killed or injured in an accident caused by the policyholder

            *           $30,000 as a total limit for all persons killed or injured in an accident

            *           $10,000 for property damage caused in an accident

Depending on the amount of driving you do or the amount of protection you want, liability insurance may not be enough. Following is a list of the most common types of insurance coverage available to motorists:

Bodily Injury Liability protects you against the financial consequences of loss arising from injury to another person, up to the dollar amount stated in your policy.

Property Damage Liability is similar to bodily injury, except that it protects you against a claim for damage to another person's automobile or property.

Collision Insurance pays for damage to your vehicle caused by impact with another object or an overturn, irrespective of fault.

Comprehensive Insurance pays for damage to your vehicle caused by something other than a collision or upset.

Uninsured/Underinsured Motorists Insurance (UM/UMI) provides injury coverage to you and your passengers up to your policy limit, if you're involved in an accident caused by the owner or operator of an uninsured vehicle. This insurance also provides protection against a hit-and-run or when the at-fault driver's policy limits are insufficient to cover losses.(For information on insurance requirements necessary for registering vehicles in Nevada, see "Moving to Las Vegas.")

–Life Insurance

Life insurance provides financial compensation to your family in the event of your death. There is no federal income tax on the payout of life insurance policies, ensuring your family receives their benefits in full.

The first step in choosing the best plan for your needs is to make a list of all of your family's financial responsibilities. From here you can estimate the amount of money your family would need to satisfy financial obligations and make a lifestyle transition after your death. Your insurance agent can help you choose the type of insurance policy that best fits your needs. Here are examples of standard coverage options:

            *           Term insurance is coverage for a specific period of time

            *           Permanent insurance covers the insured for an entire lifetime

While a term insurance policy can be renewed after expiration, its premium will rise accordingly. Permanent insurance is not a progressive type of policy, meaning you won't have to pay more as you get older.

Common permanent life insurance plans have a "cash value" option that offers the insured a number of choices. For instance, if you cancel your insurance coverage, the cash value option will pay out the lump sum of the premium.

It's also possible to "borrow" against a life insurance plan (based on the total amount of the cash value) and use it as collateral. The "loan" will still require interest, and if not paid back in full, can reduce the amount of death benefit your family would ultimately receive in the event of your death. A permanent life insurance policy allows you to add additional insurance, or "riders," to help specifically tailor your coverage to meet your needs.

–Title Insurance

Title companies provide a very valuable service during the home-buying process. A title company is responsible for researching abstracts or actual deed records, lawsuits, tax records, liens and other documents to make sure no one else has an ownership claim against a property. Once the title company determines a clear title, it will issue an insurance policy to the mortgage company and the buyer to guard against any title defects that might show up later.

In addition to researching the title to a property, a title company also serves as the host on closing day. Often the real estate agent, buyer, seller and title representative will meet at the title company to sign closing papers. After all papers are signed, the title company will file the necessary documents with the county to validate the sale.

Title insurance protects against:

            *           Fraud

            *           Forged deeds, releases or wills

            *           Undisclosed or missing heirs

            *           Liens for unpaid estate, inheritance, income or gift taxes

            *           Instruments executed under invalid or expired power of attorney 

            *           False impersonation of the true owner of the property

            *           Mistakes in recording legal documents 

            *           Deeds by minors or by persons supposedly single, but in fact, married

            *           Misinterpretations of wills