Insurance requirements
Insurance requirements define the minimum coverage levels mandated by law, contract, or regulatory body for specific activities, such as auto liability minimums set by each state (e.g. California requires $15,000 per person for bodily injury).
State governments specify insurance requirements for drivers, for instance, Florida mandates personal injury protection (PIP) of at least $10,000. Landlords typically require renters to have liability coverage; many lease agreements explicitly state coverage amounts like $100,000 per incident.
Mortgage lenders require homeowners insurance before closing a loan–Fannie Mae and Freddie Mac set guidelines requiring at least the lesser of 100% replacement cost or outstanding loan balance. Businesses must meet industry-specific insurance requirements–for example, general contractors in New York need workers’ compensation and disability insurance to get licensed, as reported by YourInsurance.info.
Rideshare companies like Uber require drivers in Texas to carry at least $50,000 bodily injury per person under commercial policies during ride periods. Employers must provide workers’ compensation coverage where required by state law, with penalties including fines exceeding $10,000 in some states for noncompliance (California Labor Code §3700.5).
Many universities require students with F-1 visas to purchase health insurance that meets ACA-equivalent coverage levels. Federal law imposes certain insurance requirements on commercial trucking–for interstate freight carriers, FMCSA mandates $750,000 minimum liability.
Professional license boards require proof of malpractice or errors & omissions coverage–for example, Illinois mandates lawyers hold legal malpractice insurance if they do not disclose lack thereof to clients. Construction contracts frequently stipulate insurance requirements such as builder’s risk covering 100% project value and commercial general liability with specified limits (e.g. $2 million aggregate).
How much home insurance do I need for a mortgage?
The amount of home insurance required for a mortgage will vary depending on the type and size of your loan. Generally, lenders require you to purchase enough coverage to at least cover the full amount of your loan or replace the cost of rebuilding your home in case of a disaster. The exact coverage limits…
How much PIP auto insurance do I need?
PIP auto insurance is required in many states and the amount of coverage you should have depends on your specific circumstances. Generally, it’s a good idea to carry as much PIP coverage as possible to provide yourself with the best protection against unexpected expenses due to an accident. Your best bet is to speak with…
How much renters insurance is required?
The amount of renters insurance that is required depends on the individual’s circumstances. Generally, liability coverage should be at least $100,000 in most states and property coverage should cover all possessions owned by the renter. It is also recommended to have a minimum of $10,000 in medical payments and living expenses coverage in case of…
Do I need to have collision insurance?
Collision insurance is not required in all states, and the minimum coverage requirements vary by state. In most cases, it is best to check with your local Department of Motor Vehicles (DMV) or an insurance broker to determine if collision insurance is legally required where you live. It is important to note that even if…
Do I need car insurance to get my license?
Yes, it is a requirement to have car insurance in order to get your license. Without proof of an active and valid insurance policy, you will not be able to obtain or renew your license. Insurance policies protect drivers from financial liability in the event of an accident and are important for keeping roads safe…
What do I need to get homeowners insurance?
In order to get homeowners insurance, you will need to provide a variety of documents such as proof of ownership, your personal information (name, address, etc.), Financial information (income and assets), and details about the property. You may need to complete an application for coverage including information regarding additional insureds or scheduled personal possessions. Depending…
Do you need to buy insurance for Turo?
Yes, it is important to buy insurance for Turo. Insurance helps to protect you from damage or loss caused by covered events such as accidents, theft, vandalism and more. Without insurance, you may be liable for any costs associated with a covered event. Some rental contracts may require that you have an insurance policy in…
Should I get medical payments coverage on my auto insurance?
It is wise to consider getting medical payments coverage on your auto insurance policy. This type of coverage will help you pay for medical expenses related to an automobile accident, regardless of who is at fault. Many states require drivers to carry certain levels of medical payments coverage as part of their auto insurance policies.…
Can you get a driver’s license without insurance?
No, it is not possible to get a driver’s license without insurance in most states. Insurance is mandatory for getting a license in all 50 US states and the District of Columbia. Many countries worldwide require drivers to hold an active auto insurance policy before obtaining or renewing a driver’s license. Without this requirement, motorists…
Why do we have to have car insurance?
Car insurance is an important protection for drivers and vehicle owners. It is required by most states in the US to legally operate a vehicle, as it helps provide financial security against losses caused by accidents or other covered events. Car insurance pays for damages resulting from covered events such as collisions, theft, fire, and…
How long do I need to have SR-22 insurance?
SR-22 insurance requirements vary depending on the state in which you live. Generally, it is required to be maintained for a period of three years from the date of conviction or other specified incident that requires an SR-22 filing. During this time period, failure to maintain coverage or file proof of financial responsibility may result…
See also Insurance requirements by state.