Insurance types
Every type of cover, explained on its own terms.
Choose a type of insurance to see what it usually protects, what it commonly leaves out, the words you will meet, and the questions worth asking before you buy.
Not sure which you need? Use the coverage checklistType 1 of 8
Health
Helps pay for medical care — from doctor visits to hospital treatment. How it works depends heavily on the health system in your country.
Also called: Medical insurance, private health cover
What it usually covers
- Doctor and specialist visits
- Hospital stays and surgery
- Prescription medicines, depending on the plan
- Preventive care such as check-ups, on many plans
What it commonly excludes
- Cosmetic treatment that is not medically necessary
- Care outside the plan's network, on some plans
- Pre-existing conditions, or waiting periods before they are covered
- Experimental or unapproved treatment
Typical examples only. Your policy's "Exclusions" section is the final word.
Questions to ask before you buy
Ask any insurer or adviser, and compare the answers in writing.
- 1 Which doctors and hospitals are in the network?
- 2 What are the deductible and the out-of-pocket maximum?
- 3 Are the medicines I take regularly covered?
- 4 Are there waiting periods or exclusions for existing conditions?
At a glance
All insurance types compared
A general overview. Products, names and requirements vary by country and insurer.
| Type | Main purpose | Cost terms to check | Common optional extras | Often considered by |
|---|---|---|---|---|
| Health | Paying for medical care | Premium, deductible, coinsurance, copays, out-of-pocket maximum | Dental, optical, wider networks | Most people, depending on the local health system |
| Motor | Road liability and vehicle damage | Premium, excess, no-claims discount | Breakdown help, courtesy car, legal cover | Anyone who owns or regularly drives a vehicle |
| Home & property | Home structure, belongings and liability | Premium, sum insured, single-item limits | Accidental damage, flood, items away from home | Homeowners and renters |
| Life | Financial support for dependants | Premium, sum assured, term | Critical illness, waiver of premium | People with dependants or shared debts |
| Travel | Medical and trip costs while away | Premium, excess, medical limit, item limits | Winter sports, gadget cover, business travel | Anyone travelling, especially abroad |
| Business | Protecting a business from claims and losses | Premium, excess, limits per claim and per year | Cyber, business interruption, employment practices | Business owners, freelancers and contractors |
| Pet | Veterinary costs | Premium, excess, per-condition or annual limit | Dental, third-party liability for dogs | Pet owners |
| Liability & umbrella | Legal responsibility to others | Premium, limit of indemnity | Higher limits, worldwide cover | People with significant assets or higher-risk activities |
Select a type name to open its overview above.
Common questions
Insurance types: frequently asked questions
- Requirements depend on your country and circumstances. Motor liability insurance is compulsory in most countries. Employer's liability is required in the UK under the Employers' Liability (Compulsory Insurance) Act 1969. In the US, the individual health insurance mandate applies in some states. Check your local regulator for the rules that apply to you.
- Buildings insurance covers the structure of the property — walls, roof, floors and permanent fixtures. Contents insurance covers your moveable possessions inside the home. The FCA consumer guide to home insurance explains both in plain language.
- The sum insured is the maximum the insurer will pay on a claim. For buildings insurance it should reflect the rebuild cost — not the market value — of your home. The Association of British Insurers (ABI) publishes a rebuild calculator to help homeowners set the right figure.
- Professional indemnity (PI) insurance covers claims that your advice, design or service caused a client a financial loss. It is required by many professional bodies. The British Insurance Brokers' Association (BIBA) lists the professions for which it is compulsory in the UK.
- An umbrella policy sits on top of existing motor, home and other liability policies, providing a higher combined limit. The Insurance Information Institute explains how umbrella cover works and typical coverage amounts.
Not sure which types apply to you?
Answer eight short questions to see which kinds of cover are worth understanding first.