August 14th is Financial Awareness Day

August 14th is Financial Awareness Day, which promotes financial literacy and health. Planning for the unforeseen future is an important aspect of financial health which links insurance to financial awareness in limiting the risk of prospective losses and choosing suitable and appropriate insurance coverage. This includes health, life, vehicle, and other forms of insurance plans. Consumers can make important long-term financial decisions by reviewing insurance policy possibilities and shopping for coverage regularly.

The mission of the Nevada Division of Insurance is to protect the rights of Nevada consumers in their experiences with the insurance industry and to ensure the financial solvency of insurers. In pursuit of the Division's mission, the Nevada Division of Insurance has developed several resources to help Nevada consumers make an informed assessment of insurance options across multiple categories.

Home Insurance -

Selecting a homeowner's policy can be a significant financial decision, given the national average increase in coverage costs and the numerous coverage aspects that a policyholder should be aware of. When choosing coverage, homeowners should consider replacement and repair expenses, and the risks posed by floods, earthquakes, and fires.

Nevada consumers can visit the Division’s Homeowners Insurance Information Hub to learn how to read their policy, consider Home Insurance options, submit a claim, check approved rate filings, and more.

For various forms of coverage, Nevada consumers can use the Nevada Division of Insurance’s Homeowner Coverage Tool, which will provide a listing of admitted insurance companies that are currently accepting applications for personal home insurance coverage. This tool allows consumers to look up coverage options by a particular zip code.

The investments that you make in your hobbies and homes can have a great influence on your insurance needs. The Division of Insurance recommends that you create a home inventory to help you decide on the type and amount of home insurance you need and to expedite the claims process in the event of a loss. Visit the Division's Home Inventory Guide for tips and to download the NAIC Home Inventory App.

Flood damage can be caused by a water leak in the home or due to natural disaster-level events. This distinction illustrates the importance of factors to be aware of when selecting and reviewing a homeowner's insurance policy.

To purchase flood insurance, contact your insurance company or insurance agent who sells your home or auto insurance. If you need help finding a provider, go to | Flood Insurance Providers | FloodSmart and call the NFIP at 877-336-2627.

Auto insurance -

Auto Insurance is a product that provides financial protection for cars, trucks, motorcycles, and other road vehicles from loss, physical damage, and/or bodily injury liability resulting from traffic collision, theft, or other losses.

Nevada consumers should visit the Division’s Automobile Insurance Information Hub for resources on frequently asked questions, gap coverage, and how your credit score can affect insurance scores in underwriting.

By law, all drivers in Nevada must purchase auto insurance.

Starting July 1, 2018, the minimum motor vehicle liability insurance coverage will increase to $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage ("25/50/20").? For more information, please visit the Division's web page on the higher minimum vehicle liability requirements.

It is possible to purchase more coverage protection than the minimum coverage required. Liability insurance coverage protects you only if you are liable for an accident and pay for the injuries to others or damages to their property. It does not provide coverage for you, your passengers who are your resident relatives, or your property. Property Damage coverage is also available but is a separate coverage and is not required by law.

Life Insurance -

Life insurance is a significant financial consideration for anyone who has someone who depends on them. For long-term financial awareness, life insurance can be a critical component in creating a financial strategy.

Nevada consumers can access more information and resources on the various types and coverages available in life insurance products on the Division’s Life Insurance & Annuities Information hub.

When considering life insurance, consumers should be aware that there are two major types: term and permanent. A term life insurance policy pays if the insured dies during the policy's "term". Permanent life insurance, which includes investment characteristics, combines the death benefit coverage of a term policy with an investment component that can generate cash value over time. Some permanent insurance allows policyholders to access money quickly for any reason.

Unlike term insurance, all permanent policies remain in place as long as the premium is paid. They also all have a cash value component that increases over time and allows the owner to borrow against that cash value.

There are four types of permanent life insurance:

Whole Life Insurance

Universal Life Insurance

Variable Life Insurance

Variable Universal Life Insurance

When choosing life insurance, consumers should consider more than just the death benefit. The Division recommends that consumers seeking permanent life insurance consult a certified investment or tax expert to determine which policy meets their risk tolerance and investment objectives.??

The Nevada Division of Insurance wishes all Nevada consumers a prosperous and enlightening Financial Awareness Day. For more information and resources, please visit the Division's website, DOI.NV.GOV.

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