Insurance

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When you buy life insurance, you’ll typically have two types of insurance companies to choose from. A mutual life insurance company is a company that’s owned by policyholders, while a stock insurance company is a company that’s owned by shareholders.

Only about 15% of life insurance companies doing business in the U.S. as of 2020 were mutual life companies, according to the American Council of Life Insurers

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In a mutual life company, policyholders elect a board that directs management, whereas with a stock mutual company, the board of directors is chosen by shareholders. Essentially, the policyholder is both a customer and an owner in a mutual life insurance company. With a stock insurance company, policyholders are customers only. Shareholders are the owners of a stock insurance company.

One big difference between mutual life insurance companies and stock insurance companies is that when a mutual life company needs to raise money, it must issue debt or borrow from policyholders. That money is repaid from the insurer’s operating profits. A stock insurance company can raise money by issuing debt or by issuing more stock. The ability to raise money by issuing stock gives stock insurance companies more flexibility.

Many insurance companies have demutualized over the years. Demutualization is the process of changing the legal structure of an insurance company from a mutual form of ownership to a stock form of ownership. When an insurer demutualizes, it typically issues stock or other compensation to policyholders for their ownership in the mutual company

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Top mutual life companies in the U.S.

These are the five largest mutual insurance companies in the U.S., based on 2022 market share for individual policies, according to S&P Global Market Intelligence.

Source: nerdwallet.com

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When your pet faces a medical issue, your vet may prescribe a special diet to help manage the condition. While prescription pet food can be a critical part of your furry friend’s treatment plan, it can also come with a hefty price tag. If you’re wondering whether pet insurance covers the cost of prescription pet food, the answer is: It depends on the provider.

What is prescription food for pets?

Prescription diets are formulated to address specific health conditions in pets, ranging from allergies to kidney disease. Unlike regular pet food, these generally require a vet’s prescription, ensuring they’re fed to pets who genuinely need them.

Why might my pet need prescription food?

Your vet might recommend a prescription diet if your pet has conditions like:

  • Arthritis.

  • Food allergies.

  • Kidney issues.

  • Heart problems.

These diets cater to the pet’s unique nutritional needs and can help manage or treat their condition. They usually come with a higher price tag than standard pet food.

Does pet insurance cover prescription pet food?

Some pet insurance plans cover prescription food, but it’s important to read the fine print. Your policy might cover prescription diets under certain conditions or up to a specific limit.

Pet insurance company

Covers prescription food in standard plan?

Covers prescription food through add-on?

Sometimes.

Nationwide

Sometimes.

Sometimes.

AKC’s prescription food coverage

AKC won’t cover most pet food, but it makes an exception for prescription diets used as the sole treatment for a covered condition. So if your veterinarian prescribes a special diet to manage your pet’s condition, AKC will consider covering the cost.

Embrace’s prescription food coverage

Embrace generally doesn’t include prescription food coverage in its standard insurance plans. One exception may be if your vet prescribes a certain type of diet for hyperthyroidism in cats. But if you enroll in the optional Wellness Rewards program, you can get reimbursed for prescription diets purchased through your vet. The Wellness Rewards program also covers other routine expenses like wellness exam fees and vaccines.

Figo’s prescription food coverage

Figo offers optional “Powerups” that you can add to its standard accident and illness plan. One of them reimburses you for vet exam fees and will pay up to $250 per policy term for food prescribed as the sole treatment for a covered illness. So if your dog is diagnosed with an ailment that requires a special diet and your vet prescribes a therapeutic food as the only treatment, this rider can help offset the cost.

MetLife’s prescription food coverage

MetLife covers prescription pet food from a veterinary provider under its standard accident and illness plan in most states.

Nationwide’s prescription food coverage

Nationwide may cover prescription food under certain plans or with an extra rider. If it’s included, the food must be a therapeutic diet prescribed by a veterinarian to treat a covered medical condition. Your vet may need to provide Nationwide with details about the type of food, which condition it’s treating and how much you should feed your pet.

Pets Best’s prescription food coverage

Pets Best doesn’t cover prescription pet food or supplements.

Spot’s prescription food coverage

Spot’s core pet insurance plan includes coverage for prescription food and supplements when they’re prescribed by a licensed veterinarian to treat covered conditions. The policy reimburses actual costs for these prescription foods, up to the limits specified in your policy.

However, Spot doesn’t cover prescription food used for general maintenance or weight management, or any food you can buy without a vet’s prescription.

Trupanion’s prescription food coverage

Trupanion covers prescription pet foods for dogs and cats when they’re prescribed by a licensed veterinarian for the treatment of a covered illness or injury. This coverage reimburses 50% of the cost, minus any deductible. But the policy covers only the first two months of the prescribed diet. After that, you’ll pay the full cost out of pocket.

🤓Nerdy Tip

Pet insurance often excludes pre-existing conditions. So if your pet was already on a prescription diet before you bought your policy, it probably won’t be covered.

How does coverage for prescription food work?

First, check your policy details to make sure prescription food is covered and see what restrictions apply. To find this information, look in the fine print and read through your plan’s endorsements.

Typically, your vet must prescribe the food for a specific medical condition affecting your pet. It usually can’t be for general health or weight management.

If it’s covered, you’ll generally pay upfront for the food and then submit a claim to your insurance company. The insurer would reimburse you according to your plan’s terms.

For example, if your dog develops kidney disease, your veterinarian may prescribe a special low-protein diet. After buying the prescribed food, you’d submit the receipt and any other requested documentation to your insurer. Depending on your plan, you might be reimbursed for a percentage or up to a certain limit of the food’s cost. If you haven’t met your deductible, the insurer may subtract that amount from your claim payout.

Other ways to save on prescription food

Prescription pet food can be a game changer for pets with certain health issues. But if your policy doesn’t offer coverage, there are other ways to make these diets more affordable. Consider:

  • Buying in bulk or during sales.

  • Joining loyalty programs or subscribing to regular deliveries for discounts.

  • Exploring homemade diet options (with guidance from your vet).

Source: nerdwallet.com

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ResidentShield

ResidentShield offers renters insurance in most U.S. states.

  • No credit check required to get a policy.
  • Your rate won’t go up if you file a claim.
  • Bedbug coverage may be available.
  • Animal liability coverage may be limited.

ResidentShield

ResidentShield offers renters insurance in most U.S. states.

  • No credit check required to get a policy.
  • Your rate won’t go up if you file a claim.
  • Bedbug coverage may be available.
  • Animal liability coverage may be limited.

ResidentShield isn’t an insurance company. It’s an agency that works with third-party insurers to find you a renters policy, with availability in most U.S. states.

ResidentShield partners with certain apartment communities across the country. If you live in one of those communities, the company will make your life a little easier by prefilling certain parts of your application. But you don’t need to live in a partner complex to get ResidentShield renters insurance.

Policies from ResidentShield stand out in a couple of ways. First, the application process doesn’t involve a credit check. That’s useful for renters with poor credit, who generally pay higher renters insurance rates in most states.

Second, ResidentShield promises that your premium won’t go up if you file a claim. That’s a rare perk in the renters insurance industry.

But pet owners will want to take a close look at ResidentShield’s animal liability coverage, which may fall short of what you’d find elsewhere.

State availability

ResidentShield sells renters insurance in Washington, D.C., and every state except for Alaska and Hawaii.

ResidentShield renters insurance coverage

Landlords sometimes require tenants to purchase a policy with a minimum amount of renters liability insurance, but otherwise, the coverage you choose is generally up to you. Below are the four types of coverage included in most standard renters policies:

Type of coverage

What it does

Covers your clothing, furniture, electronics and other belongings.

Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.

Pays out if you’re responsible for injuries to other people or damage to their property.

Covers injuries to other people in your home, regardless of fault.

One nice feature of a ResidentShield policy is that it covers your personal belongings on a replacement cost basis. With this type of coverage, the company will pay you enough after a claim to buy new replacements for damaged or stolen items.

Some renters policies pay only the actual cash value of lost items, which reflects depreciation. Because things like furniture and electronics tend to lose value over time, having actual cash value coverage means your claim payout could come up well short of what you need to buy new items.

Depending on where you live, you may be able to add some or all of the following to your policy:

  • Water and sewer coverage, which pays for damage to your belongings if a water line or sump pump backs up into your home.

  • Pet damage coverage, which pays to repair things like carpet stains or scratch marks from your furry buddy.

  • Extra animal liability coverage for medical and/or legal expenses if your pet injures someone or damages their property. (The personal liability coverage included with your policy may be limited for scenarios involving animals.) Learn more about dog liability insurance.

  • Equipment protection coverage, which pays for physical damage to laptops, phones and other electronic gadgets. 

  • Tenant damage coverage, which pays for property damage you cause to your rented house or unit.

  • Earthquake coverage to repair or replace your belongings after an earthquake (available in California only).

Discounts

ResidentShield offers a discount of up to 20% for renters in a senior living community. You may also be able to save money by paying your renters insurance premium in full, rather than in installments.

Consumer experience

Website: You can use the ResidentShield website to get a renters insurance quote, file a claim or see basic information about the company’s policies.

Claims: You can file a claim online or call 800-822-2997. According to the company, your premium won’t go up after you file a claim, which is unusual in the insurance industry. Rates typically go up nearly 19% on average after a renters insurance claim, according to NerdWallet’s rate analysis.

Customer service: For support, email [email protected], call 800-566-1186 or use the company’s chat feature, which offers both automated and live assistance. Customer service is available on weekdays from 7:30 a.m. to 7 p.m. CT.

Where ResidentShield stands out

Replacement cost coverage for personal belongings. Many insurance policies charge extra for this type of coverage, while ResidentShield includes it.

No penalties for poor credit or prior claims. Renters with a patchy credit history or a past insurance claim often pay more for their policy. That’s not the case with ResidentShield.

Where ResidentShield falls short

Animal liability coverage. Most renters insurance covers dog bites and other animal liability claims up to your full personal liability limit (often $100,000). But many of the quotes we got from ResidentShield had lower levels of animal liability coverage, such as $10,000, unless we were willing to pay extra. The average cost of a dog bite claim was more than $64,000 in 2022, the most recent data available, according to State Farm and the Insurance Information Institute.

Availability in Alaska and Hawaii. Renters in these states will need to look elsewhere for coverage.

Current Product

Complaints to NAIC 

No data

Complaints to NAIC 

Close to expected

Complaints to NAIC 

More than expected

Coverage options 

No data

Coverage options 

More than average

Coverage options 

More than average

Discounts 

No data

Discounts 

Great set of discounts

Discounts 

Average set of discounts

Bottom line 

ResidentShield offers renters insurance in most U.S. states.

Bottom line 

Renters insurance coverage with a few useful add-ons.

Bottom line 

Straightforward policies from a tech-centric, mission-driven company.

Other renters insurance companies to consider

Not ready to make a decision? You may be interested in these other renters insurance companies:

Frequently asked questions

Source: nerdwallet.com

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Home insurance is meant to protect your finances: your house, your belongings and your assets. But not all policies are created equal. What they cover depends on whether you own or rent, and whether the residence is a house, a condo or a mobile home.

Many homeowners insurance policies are based on a set of templates issued by the Insurance Services Office (ISO), which is why these templates are sometimes called ISO forms. (The Insurance Services Office is now part of analytics firm Verisk.) Although you may not see technical terms like “HO-3” or “named perils” when you’re shopping for a policy, knowing the different coverage types can help you better understand what you’re buying.

This guide breaks down the different types of home insurance policies to help you understand which policy is right for your needs.

Get home insurance quotes in minutes

Answer a few questions to see custom quotes and find the right policy for you.

Named perils vs. open perils

Before diving into the different types of home insurance and what they cover, it’s helpful to understand how perils work. A “peril” is an event that can cause damage or loss to your home and your belongings.

Some parts of your home insurance policy may operate on a “named perils” basis, meaning you’re only insured against the specific events listed in your policy. Others may operate on an “open perils” or “all-risk” basis, meaning you’re insured against all events except listed exclusions.

Understanding what types of perils a home insurance policy covers is vital. Generally, open peril policies provide the most coverage.

Types of home insurance coverage

Standard homeowners insurance policies generally include these six types of coverage, unless otherwise noted in the policy:

Coverage type

What it does

Typical amount

Covers damage to the home and attached structures, such as a porch.

Enough to rebuild your home.

Covers stand-alone structures on your property, such as a fence or shed.

10% of dwelling coverage.

Pays to repair or replace stolen or damaged belongings.

50% to 70% of dwelling coverage.

Helps pay temporary living expenses while your home is being repaired.

20% of dwelling coverage.

Pays if you injure someone or cause property damage unintentionally or through neglect.

$100,000 to $500,000.

Pays to treat someone injured on your property, regardless of who’s at fault. It also pays if you, a family member or a pet injures someone away from your home.

$1,000 to $5,000.

The most common types of home insurance policies

Insurance providers typically sell several types of home insurance policies, each of which offers varying levels of coverage. It’s important to read the details of your policy to understand what is and isn’t covered.

HO-1: Basic form policy

An HO-1 policy is the most bare-bones type of home insurance. It generally covers the physical structure of your house. It may sometimes include coverage for other structures, personal property, additional living costs and liability.

An HO-1 policy typically covers damage caused by these 10 named perils:

  • Fire or lightning.

  • Windstorm or hail.

  • Explosion.

  • Riot or civil commotion.

  • Damage caused by aircraft or vehicles.

  • Vandalism.

  • Volcanic eruption.

Even if an HO-1 policy is available to you, many homeowners opt for an HO-3 policy instead because it offers more coverage.

HO-2: Broad form policy

HO-2 policies are sometimes known as “broad form” policies because they cover more perils than HO-1 policies, but their coverage is still limited. In addition to the 10 perils covered by HO-1 policies, the HO-2 policy adds coverage for:

  • Falling objects.

  • Weight of ice, snow or sleet.

  • Accidental overflow or discharge of water or steam.

  • Freezing of plumbing, heating or air conditioning.

  • Sudden and accidental tearing apart, cracking, burning or bulging of certain household systems.

  • Sudden and accidental damage from artificially generated electrical current.

If a peril that damages your house or belongings isn’t explicitly named in the policy, the loss won’t be covered.

Some HO-2 policies also provide personal liability coverage.

HO-3: Special form policy

An HO-3 policy is the most popular type of home insurance. It’s known as a “special form” or “open perils” policy. It insures the structure of your home against all causes of damage except those specifically listed as exclusions in your policy.

Here are common exclusions:

  • Earthquake.

  • Power failure.

  • War and nuclear accidents.

  • Intentional damage.

  • Government actions.

  • Birds, vermin, rodents or insects.

  • Damage caused by your pets.

  • Smog, rust or corrosion.

  • Wear and tear.

  • Pollution.

Personal belongings like furniture, electronics and clothes are covered on a “named perils” basis. That means only damage caused by events specifically listed in your policy are covered. These typically include:

  • Fire or lightning.

  • Windstorm or hail.

  • Explosion.

  • Riot or civil commotion.

  • Damage caused by aircraft or vehicles.

  • Vandalism or mischief.

  • Volcanic eruption.

  • Falling objects.

  • Weight of snow, ice or sleet.

  • Accidental discharge or overflow of water or steam.

  • Sudden or accidental tearing, cracking, burning or bulging.

  • Freezing of plumbing or HVAC systems.

  • Damage due to artificially generated electrical current.

🤓Nerdy Tip

You’ll typically need separate flood insurance or earthquake insurance if you live in an area that’s prone to these risks, as they are not covered by standard home insurance policies.

HO-4: Contents broad form policy

An HO-4 policy is commonly referred to as renters insurance. It’s designed specifically for individuals who are renting a home or an apartment. The main purpose of this policy is to cover your belongings, not the building itself.

An HO-4 policy safeguards your stuff — like furniture, clothes and electronics — against the same 16 perils covered by an HO-3 policy. It also includes personal liability and additional living expenses coverage.

The actual building you live in is not covered under your HO-4 policy. It’s your landlord’s responsibility to insure the structure of the building and to have it fixed if it’s damaged.

HO-5: Comprehensive policy

An HO-5 policy is like the gold standard of home insurance. It’s also called a comprehensive policy because it typically offers higher coverage limits for personal belongings and personal liability than an HO-3 policy.

An HO-5 policy covers your personal belongings on a replacement cost basis. So if something happens to them, you get the amount it costs to replace them, not just their current depreciated value. In addition, an HO-5 policy covers your belongings on an open perils basis. It also provides coverage for loss-of-use and medical payments for others.

HO-6: Unit owners policy

An HO-6 policy is for condo owners. It’s often called “walls-in coverage” because it protects what’s inside your condo, like the floors, ceilings, walls and any renovations you’ve made. It insures against the same perils as an HO-3 policy and includes coverage for your personal belongings, additional living expenses and personal liability.

But here’s the catch — this policy doesn’t cover the entire building or common areas. That’s usually handled by your condo association’s insurance. You pay for this through your condo or HOA fees. Check what your association’s policy covers to avoid any gaps or overlaps.

HO-7: Mobile home policy

An HO-7 policy is for mobile homes. It includes coverage for your home, your personal property, other structures, loss of use, personal liability and medical payments.

Similar to HO-3 policies, HO-7 policies work on an open perils basis for your mobile home’s structure and a named perils basis for your belongings. Read more about mobile home insurance.

HO-8: Modified coverage policy

HO-8 insurance is for homes more than 40 years old where it might cost more to rebuild than the house is worth. This includes historic houses or ones built in unique ways.

HO-8 insurance covers your dwelling and personal property on a named perils basis. Instead of paying the full replacement cost for damages to your home’s structure, an HO-8 policy typically reimburses the actual cash value. This means it pays you what your home is worth in cash at the time of the claim, not what it costs to rebuild.

HO-14: Contents comprehensive policy

The HO-14 policy is an advanced version of the traditional HO-4 renters insurance. Unlike the HO-4, which covers named perils, the HO-14 operates on an open perils basis, meaning it covers all risks unless they’re specifically excluded. Also, while the HO-4 provides actual cash value coverage, the HO-14 insures your items at their full replacement cost.

HO-14 insurance may come with unique features like coverage for home-sharing activities, a $500 allowance for bed bug treatments and a $300 provision for hard drive data recovery.

Get home insurance quotes in minutes

Answer a few questions to see custom quotes and find the right policy for you.

The difference between HO-3 and HO-5 policies

Both HO-3 and HO-5 policies cover your home’s structure, personal belongings, liability, medical payments and additional living expense coverage. The big difference is how they insure your belongings.

HO-3 policies use open perils for the house’s structure but named perils for personal belongings. If the policy doesn’t specifically exclude a risk for the house, it’s covered. But for belongings, it only covers listed events.

HO-5 policies are more comprehensive. They use open perils for both the home and personal belongings, covering all risks unless specifically excluded. Because HO-5 offers broader coverage, it’s often more expensive than HO-3.

HO-3 policy

HO-5 policy

Dwelling coverage

Open perils (covers all risks except exclusions).

Open perils (covers all risks except exclusions).

Personal property

Named perils (covers only specific risks).

Open perils (covers all risks except exclusions).

Coverage breadth

Broad coverage, but with some limitations.

Most comprehensive coverage.

Typical usage

Most common among homeowners.

Preferred for higher-value homes.

Generally less expensive.

Typically more expensive.

Source: nerdwallet.com

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Mercury

Homeowners insurance sold through independent agents in California and select other states.

Coverage options

More than average

Great set of discounts

NAIC complaints

More than expected

Mercury

Homeowners insurance sold through independent agents in California and select other states.

Coverage options

More than average

Great set of discounts

NAIC complaints

More than expected

Mercury is one of the biggest home insurers in California, but it also sells homeowners policies in several other states such as Texas, Virginia and New York. Its policies generally come with extra dwelling coverage in case your house costs more than expected to rebuild after a fire or other disaster. Mercury sells homeowners insurance through independent agents.

Mercury home insurance star rating

Mercury homeowners insurance earned 4 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account coverage and discounts, ease of filing a claim, website transparency, financial strength, complaint data from the National Association of Insurance Commissioners and more.

State availability

Mercury sells homeowners policies in 10 states.

Mercury home insurance coverage

You can customize your homeowners policy with numerous add-ons, but below are the types of coverage that generally come standard:

Type of coverage

What it does

Pays to repair or rebuild the structure of your home.

Covers damage to unattached structures such as sheds or fences.

Pays to repair or replace personal belongings such as furniture or clothing.

Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.

Covers legal expenses and damages if you’re responsible for injuries to other people or their property.

Covers injuries to guests in your home, regardless of fault.

Mercury’s homeowners policies include all the standard types of coverage above. They may also include the following:

  • Replacement cost coverage for personal property, which pays enough to buy brand-new replacements for damaged or destroyed belongings. Without this coverage your insurer would pay the items’ actual cash value, which reflects depreciation.

You may be able to add the following optional types of coverage to your policy:

  • Equipment breakdown coverage for repairs to air conditioning systems, kitchen and laundry appliances, water heaters, electrical panels and more.

  • Service line coverage, which pays up to $10,000 per claim for repairs to or replacement of damaged service lines, such as sewer, water and gas pipes. Without this coverage, you would be on the hook for these repairs, even though they connect to city-owned or utility-owned lines.

  • Additional coverage for valuables, such as jewelry or fine art.

  • Personal cyber coverage, which reimburses you if you’re the victim of an online attack such as online fraud or extortion, up to $50,000 with a $500 deductible.

  • Water backup coverage to pay for damage from backed-up drains or failed sump pumps.

For California homeowners who have fire coverage through the state’s FAIR Plan, Mercury offers difference in conditions insurance to cover scenarios the FAIR Plan won’t, such as theft, personal liability and water damage from broken pipes.

Discounts

Depending on where you live, you may be able to save by:

  • Owning a newer home.

  • Having fire-resistant construction materials in your home.

  • Living in a gated community.

  • Having multiple policies with Mercury (also known as bundling).

  • Installing protective devices such as smoke alarms, deadbolts or water leak detectors.

  • Not filing any claims for at least three years.

  • Signing up for electronic billing.

  • Protecting your home against wind damage.

  • Getting a quote in advance of when you need coverage to start.

  • Being a recent homebuyer.

  • Taking steps to prevent wildfires or living in a community recognized by the National Fire Protection Association as a Firewise USA site (California only).

Consumer complaints

Mercury had more than the expected number of complaints to state regulators relative to its size for home insurance, according to three years’ worth of data from the National Association of Insurance Commissioners.

Consumer experience

Website: On Mercury’s website, you can pay bills, view policy details, request changes and file claims. However, you’ll need to contact an agent to get a homeowners quote.

App: You can use Mercury’s app to see policy information, pay bills and contact customer service.

Claims: Mercury offers 24/7 claims filing online or at 800-503-3724. Once you’ve submitted your claim, you can check its status through your online account. Learn more about how to file a home insurance claim.

Customer service: For support, contact your agent, call 800-503-3724, send an email through the website or chat live with a representative.

Where Mercury stands out

Coverage. Mercury’s default policies generally include an extra cushion for your dwelling coverage, plus replacement cost coverage for your personal belongings. These are both more generous types of coverage than many standard homeowners policies have.

Discounts. Mercury offers plenty of ways to save money on homeowners insurance.

Where Mercury falls short

Availability. Mercury’s homeowners insurance is available in only 10 states.

Consumer complaints. Mercury draws a higher volume of complaints to state regulators than expected for a company of its size.

Is Mercury home insurance right for you?

Mercury homeowners insurance isn’t available to most Americans, but if you live in California or one of the other states the company serves, its policies are worth considering. It’s ideal for someone looking to work with an agent to find the coverage they need.

Current Product

Complaints to NAIC 

More than expected

Complaints to NAIC 

Fewer than expected

Complaints to NAIC 

Close to expected

Coverage options 

More than average

Coverage options 

About average

Coverage options 

More than average

Discounts 

Great set of discounts

Discounts 

Average set of discounts

Discounts 

Great set of discounts

Bottom line 

Homeowners insurance sold through independent agents in California and select other states.

Bottom line 

Travelers offers strong coverage and decent discounts, but home insurance isn’t available in all states.

Bottom line 

Big national brand with plenty of discount options.

Other home insurance companies to consider

Not ready to make a decision? You may be interested in these other homeowners insurance companies:

Frequently asked questions

Source: nerdwallet.com

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Each calendar year brings a new set of changes to Medicare, from premiums and deductibles to rules and regulations. To get the most from Medicare in 2024, it’s helpful to understand what will be different.

Here’s a primer on 2024 Medicare changes:

Part A costs will mostly go up

Medicare Part A covers your hospital care as well as care in a skilled nursing facility (SNF). Most people get Part A for free, but for those who haven’t worked enough quarters to get free Part A, premiums will stay about the same. If you have to buy Medicare Part A, you’ll pay $278 or $505 per month in 2024, compared with $278 or $506 in 2023.

The inpatient hospital deductible, which you’ll pay before Medicare starts covering costs, will be $1,632 in 2024, up from $1,600 in 2023. (Note that certain Medigap plans do cover your Part A deductible.) You’ll pay the Part A deductible for each inpatient hospital or SNF benefit period — a new benefit period starts if you haven’t received inpatient hospital care or SNF care for 60 days in a row.

Medicare covers the first 60 days in a hospital or the first 20 days in a skilled nursing facility (once you hit the deductible). Copays for the rest of your stay are slightly higher in 2024, and are as follows:

  • $408 per day for days 61 to 90 in a hospital (up from $400 in 2023).

  • $816 per day for lifetime reserve days in a hospital (up from $800 in 2023). (These are any days over 90 days; you have 60 lifetime reserve days.) 

  • $204 per day for days 21 to 100 in a skilled nursing facility (up from $200 in 2023). 

Part B costs will go up

Medicare Part B covers your visits to medical providers, as well as things like ambulance services and durable medical equipment. Everyone pays a premium for Part B, even if you have a Medicare Advantage plan.

Premiums for Medicare Part B will be $174.70 per month in 2024, up from $164.90 in 2023. The Part B deductible will be $240 in 2024, up from $226 in 2023. You pay the Part B deductible just once per year.

Compare Medigap plans

Medicare Advantage plan ratings are lower — again

In 2024, the average star rating for Medicare Advantage plans, weighted by enrollment, is 4.04 stars, down from 4.14 stars in 2023. And about 42% of Medicare Advantage contracts received a rating of 4 stars or higher from the Centers for Medicare & Medicaid Services (CMS), compared with about 51% in 2023.

“CMS attributes the additional decline in star ratings to methodological changes, new measures factoring into the ratings, as well as the overall performance of plans,” Meredith Freed, a senior policy analyst with the Program on Medicare Policy for KFF, a health policy nonprofit, said through email.

That said, approximately 74% of Medicare Advantage enrollees will be in plans with 4 stars or higher in 2024, similar to 72% in 2023, according to CMS.

Part D catastrophic drug costs will be eliminated

Currently, once Medicare Part D enrollees reach the “catastrophic” level of prescription drug spending — which is $7,400 in 2023 — they pay up to 5% of the cost of their drugs for the remainder of the year. It doesn’t sound significant, but it can be expensive.

“If you have medication that costs $30,000 a month — retail price — 5 percent of $30,000 is $1,500 a month,” says Melinda Caughill, co-founder and CEO of 65 Inc., which offers Medicare guidance. And there are many medications that cost $30,000 a month, Caughill says. “That’s a big deal.”

Next year, once enrollees hit the 2024 catastrophic limit of $8,000 in drug spending, there’s no more coinsurance required. Your prescription drug expenses are essentially capped. (Drug spending includes what enrollees pay out of pocket, plus the discount you get from manufacturers on drugs when you’re in the “coverage gap” phase of drug coverage. So that $8,000 isn’t entirely out of your pocket.)

“This is a policy change that will greatly help those people with very high-cost prescription drugs,” Gretchen Jacobson, vice president of the Medicare program for The Commonwealth Fund, a private foundation with the mission of promoting a high-performing health care system, said through email. “An out-of-pocket limit can also provide peace of mind to people whose expenses are below the limit.”

More people will be eligible for Extra Help

Under the government’s Extra Help program, people with limited resources and income may be able to get cost help with prescription drug plan costs, such as premiums, deductibles and prescription copays.

In 2024, thanks to the Inflation Reduction Act, more people will be eligible for full benefits, saving nearly $300 more per year on average compared with savings for partial benefits. (Full Extra Help benefits are worth about $5,300 per year in 2023, according to the Social Security Administration.) Eligibility will be expanded to people with income and resources up to 150% of the federal poverty level, according to the Department of Health and Human Services.

Unfortunately “many Medicare beneficiaries are not aware of either the Extra Help program, which helps with Part D costs, nor the Medicare Savings Programs, which help with Part A and B costs,” Freed said. “So it is important for them to check their eligibility for these programs.”

Source: nerdwallet.com

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Before you buy a homeowners policy, your insurer might require a home insurance inspection. This inspection isn’t the same as the one you had when you bought your house. Instead, it’s a way for insurance companies to see the condition of your home, evaluate your coverage needs and decide whether they’re willing to insure you. Keeping your home in good shape can help this process go smoothly and ensure you get the coverage you need.

What is a home insurance inspection?

A home insurance inspection helps insurers understand the risks of covering your house. It allows your insurer to figure out how much it would cost to rebuild your house and to spot any issues, like fire hazards or weak structures, that might lead to insurance claims in the future. This information helps the insurance company decide if your home is in good enough shape to insure, and if so, how much your premium should cost.

Not all homes will undergo these inspections. Your insurer might require an inspection if:

  • You have a high-value or older home.

  • You live in an area at risk of tornadoes, hurricanes, wildfires or other hazards.

What can you expect during a home insurance inspection?

You might not need to be present for an exterior inspection, but you will if the inspector is checking the interior of your home for things like wiring, plumbing and safety features. The inspection could take up to a few hours, depending on how detailed it is.

For an external inspection, the inspector may look at things like your roof, windows, doors and chimney. They may also check for hazards like overhanging trees or cracks in the walkways.

An interior inspection may involve examining walls, ceilings and floors for signs of water damage or pests. The inspector may also assess the state of your plumbing, electrical, and heating and cooling systems. They’ll often check safety features like smoke detectors, carbon monoxide detectors and security systems, too.

🤓Nerdy Tip

Your insurer may use your home insurance inspection to verify that you qualify for certain home insurance discounts. For example, many companies offer savings for having a home security system.

How to prepare for a home insurance inspection

Before your home insurance inspection, do your own thorough check to avoid being caught off guard by any problems. (You may want to hire a professional for some of these tasks.)

If you spot any potential issues, fix what you can or reach out to a contractor who can help. Here are a few key places to focus on.

Exterior of the house

  • Roof: Have a roofer check for damaged or missing shingles.

  • Gutters: Clear debris and ensure your gutters are secure.

  • Chimney: Look for cracks or loose bricks; consider a professional cleaning.

  • Trees: Trim branches away from the house.

  • Siding, doors and windows: Check for cracks, leaks and damage.

  • Walkways: Ensure there are no tripping hazards.

  • Yard: Remove loose debris and get rid of pools of water near your home that could lead to pests.

Interior of the house

  • Detectors: Ensure smoke and carbon monoxide detectors work.

  • Fire extinguisher: Check to make sure it’s operational.

  • Fireplace: Clean it out if you have one.

  • Windows, walls, doors and plumbing: Check for signs of leaks, cracks and pest issues.

  • Attic and basement: Look for signs of water or pest damage.

  • HVAC system: Have a professional clean and test your system.

What if you fail a home insurance inspection?

If your home doesn’t pass the insurance inspection, don’t worry — you have options. Make sure to act quickly. Being uninsured, even for a short time, is risky. A lapse in coverage can make it harder and more expensive to get a policy in the future. And if something happens while you’re not insured, you’ll be financially responsible.

Fix the issues

Your inspector may point out problems like a leaky roof or electrical issues. If your insurance company denies you coverage for fixable reasons like these, address them if you can.

Find a different insurer

If you were denied coverage because you live in an area at high risk for crime or severe weather, ask your neighbors who they use for home insurance. You can also ask the previous homeowners or reach out to a local independent insurance agent.

Not all companies have the same rules. Some insurers are pickier than others about the age of your roof, for instance. So if you can’t afford to get a new roof or make other major repairs, try another company. If one insurer says no, another might say yes.

Dispute the decision

If your insurer drops you due to a failed home insurance inspection and you don’t agree with the decision, you can dispute it. Be prepared to provide evidence to support your case, such as receipts for work you’ve had done on the house or a property assessment from an independent inspector.

You can also file a complaint with your state’s insurance department. It can conduct its own research into your claim and work with your insurance company to resolve the issue.

Look into state-run insurers

Many states have programs to help homeowners who struggle to get insurance. For example, Fair Access to Insurance Requirements (FAIR) plans are designed for high-risk homes that private companies won’t insure. An independent insurance agent can help you find programs like this in your area.

Source: nerdwallet.com

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These days, you can insure almost anything. Did you know, for example, that Julia Roberts has insurance for her teeth, and before Daniel Craig filmed a James Bond movie, he insured his entire body? While you probably don’t need to insure any of your body parts for millions of dollars, you might find yourself wondering when you should buy life insurance, or whether renter’s insurance is really necessary.

To help you decide on the right type and amount of coverage, we’ve broken down which kinds of insurance you will most likely need (other than health insurance, of course).

1. Life insurance

Life insurance is about more than just financing your funeral. It also allows your family to keep paying the bills if something happens to you.

People often think they don’t need life insurance if they don’t have dependents. But if you have debt such as student loans that someone has co-signed, your life insurance can be used to pay off your loans.

It’s common for employers to offer life insurance as part of their benefits package, but it’s worth noting that the life insurance your employer offers may not be enough, especially if you have dependents. Ideally, your life insurance payout should be enough to invest and yield returns that could replace your income annually. For example, if you assume that you’ll get a 5% return on the money you invest, you would need $1 million in coverage to replace a $50,000 income.

Here’s an overview of some of the most common life insurance options you might consider.

Term Life Insurance

Term life insurance is the simplest and most common form of life insurance. It covers your life for a specific period of time, and pays only if your death occurs during the term. This timeframe is typically anywhere from one to thirty years, the longer the term the higher the premium. Term life insurance can be more affordable than other types of life insurance.

💡 Quick Tip: Term life insurance coverage can range from $100K to $8 million. As your life changes, you can increase or decrease your coverage.

Whole Life Insurance

Whole life insurance covers you for your entire life. If you make consistent payments toward your policy, you’ll build a cash reserve for your family upon your death.

Universal Life Insurance

In exchange for premiums, universal life insurance can provide coverage for as long as the policyholder is alive, and some policies also accrue cash value. When the policyholder dies, their beneficiaries typically receive a tax-free death benefit in the amount specified by the policy.

Indexed Universal Life Insurance

Indexed universal life insurance (IUL) gives policyholders the option to put money towards either a fixed account or an equity index account. Index accounts with universal life policies often include well-known indexes and can be a good option if you’d like to accumulate tax-deferred cash as well as maintain a set amount of money in a fixed account.

2. Disability Income Insurance

Disability income insurance, also referred to as disability insurance, replaces a portion of your salary if you become disabled. Some employers don’t offer disability insurance, but even if yours does, you may want to consider a supplementary policy to top up the amount that you receive.

Depending on the policy, disability insurance kicks in when you become partially, completely, temporarily, or permanently disabled. Keep in mind that there is often a waiting period before benefits start, which could range from one month to a year, depending on your policy and whether you have short-term or long-term disability insurance. The longer the waiting period on your policy, the cheaper your premiums often are.

If you have to take a job that pays less because of a disability, some policies may pay you part of the difference.

Note that disability insurance is expensive, often between 1% and 3% of your salary, and many organizations offer it as a benefit. If you’re evaluating offers between two employers, it’s worth factoring in how valuable this type of insurance is to you.

3. Long-Term Care Insurance

If you’re considering a nursing home, day care, home health aide, or other type of long-term care, be prepared to pay. A Genworth survey found that the average price of a private room in a nursing home is $9,034 a month. A typical assisted living facility charges around $4,500 a month, while a home health aide runs $5,148 a month.

To ensure you can foot the bill, the American Association for Long-Term Care Insurance recommends buying a policy in your mid-50s to qualify for the best premiums. Benefits kick in when someone isn’t able to take care of everyday activities or suffers from severe cognitive impairments. Policies vary by the specific level of impairment, the type of services provided, and the length of time the covered person lives after becoming impaired.

Depending on your policy, your benefits may not start until up to 90 days after impairment, and some may require that you receive paid care in the meantime.

Recommended: 8 Popular Types of Life Insurance for Any Age

4. Car Insurance

If you own or lease a car, car insurance is a must. But there are different kinds to consider.

Collision and comprehensive insurance will cover damage to your car and can help replace it if it’s been stolen.

Liability insurance covers you if you get sued after causing an accident. There are three maximum liability limits you can get in a car insurance policy: bodily injury per person in a given accident, bodily injury for all injuries in a given accident, and personal property damage in a given accident. Each state requires different insurance minimums by law.

However, you may want higher limits than the minimum. You may be able to save money on collision and comprehensive coverage by getting a higher deductible of $500 or $1,000. If you drive a car that’s worth less than $1,000, you may want to consider dropping collision and comprehensive, though you’ll still need liability.

💡 Quick Tip: Saving money on your fixed costs isn’t always easy. One exception is auto insurance. Shopping around for a better deal really can pay off.

5. Homeowners or Renter’s Insurance

Homeowners insurance covers damages to your home or theft of personal possessions. It also includes liability insurance to cover accidents that happen on your property. However, it excludes things like floods, earthquakes, and the (hopefully unlikely) event of war.

You should have at least enough insurance to cover the replacement value of your home and possessions. This usually means getting guaranteed (or extended) replacement cost coverage. That’s different from actual cash value coverage, which covers you for the current value of your possessions.

If you’re renting instead of buying, renter’s insurance is similar, but only covers your possessions and personal liability for damages. It’s worth having in case you leave the water on and accidentally flood your kitchen. The minimum deductible for tenant or homeowner’s insurance is usually $500, but according to the Insurance Information Institute, raising the deductible could save you money.

One important element for both of these is liability insurance. This helps protect you against lawsuits, and covers things like people slipping and falling on your property. One hundred thousand dollars of liability coverage is a fairly standard amount.

Recommended: How Much Homeowners Insurance Do You Need?

6. Umbrella Liability Coverage

Umbrella coverage is essentially extra liability insurance, and most importantly, it protects you and your assets in the event of a lawsuit. It covers you beyond the limits of your car or home liability coverage. For example, umbrella coverage will protect you from libel, slander and false imprisonment.

Often it is more economical to get an umbrella policy rather than getting excess home or car liability coverage. It’s a good idea to coordinate car, home, and liability coverages. After all, you wouldn’t typically have a $100,000 deductible on your umbrella policy if your car and homeowner’s insurance have $100,000 of coverage.

The first $1 million in umbrella coverage typically costs about $150 to $300 a year, which is often less than what most people would pay for additional coverage in that amount. As your income grows and you accumulate assets, you may want to consider raising the limit.

The Takeaway

Insurance can offer peace of mind and a degree of financial security. But the type and amount of coverage you need will depend on a number of factors, including your lifestyle, health, budget, and financial goals.

When the unexpected happens, it’s good to know you have a plan to protect your loved ones and your finances. SoFi has teamed up with some of the best insurance companies in the industry to provide members with fast, easy, and reliable insurance.

Find affordable auto, life, homeowners, and renters insurance with SoFi Protect.

Photo credit: iStock/urbazon

Insurance not available in all states.
Experian is a registered service mark of Experian Personal Insurance Agency, Inc.
Social Finance, Inc. (“SoFi”) is compensated by Experian for each customer who purchases a policy through Experian from the site.


Coverage and pricing is subject to eligibility and underwriting criteria.

Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.

Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.

SoFi Agency and its affiliates do not guarantee the services of any insurance company.

All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

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Medicare beneficiaries can buy Medicare Supplement Insurance, or Medigap, to help cover certain out-of-pocket costs associated with Medicare Part A and/or Part B. (If you’re shopping during Medicare open enrollment, Oct. 15 to Dec. 7, remember that people with Medicare Advantage can’t buy Medigap plans.)

For example, depending on which plan type you choose, a Medigap policy could cover the 20% Medicare Part B coinsurance for office visits and the $1,600 deductible before Medicare Part A starts to pay for inpatient hospital care.

Medigap policies are sold by private health insurance companies. They’re regulated by the federal government and have certain standard benefits. But shopping for them isn’t always straightforward.

Shoppers might expect higher prices to come with more benefits, but that’s not always the case. Here are three scenarios to watch for so you don’t end up paying too much.

1. Paying more for the same coverage

New Medicare beneficiaries in most states can choose from up to eight out of 10 letter-named Medigap plan types: A, B, D, G, K, L, M and N. Each plan type offers a different set of benefits. (Medigap Plans C and F aren’t available to new Medicare members.)

“One of the most common and popular counseling tips we provide is that all plans of the same letter, i.e., A, B, C, D, are exactly the same. So there is no reason to pay more for one Plan A, B, C, D, over another,” Maureen McIntyre, CEO of Connecticut’s North Central Area Agency on Aging, which offers free Medicare counseling for local residents, wrote in an email.

It’s worth comparing quotes for the plan type you want. Companies might differ in terms of customer service and minor non-Medicare perks, but there’s no additional coverage to gain from buying a more expensive Plan G policy when a cheaper one is available, for example.

Still deciding on the right carrier? Compare Medigap plans

2. Paying more for less coverage

Of the eight standard Medigap plan types available, Plan A has the most basic benefits and Plan G is the most comprehensive.

One might expect Plan A to cost less than other plan types with more coverage. But sometimes lower-coverage plans are priced higher.

For example, for a 65-year-old female nonsmoker in Chicago, Cigna quotes monthly premiums of $152.06 for Medigap Plan G and $169.33 for Medigap Plan A, with identical discounts built into both rates. The lower-coverage option (Plan A) costs $17.27 more per month.

“While it is not typical for Plan A plans to be rated higher than Plan G, we recognize that this can sometimes happen, due to the actuarial experience and cost relativities related to those plans,” a Cigna spokesperson wrote in an email.

Plan A might have higher premiums if the insurance company expects members with Plan A to have more expensive claims, even though Plan G has more coverage, according to the Cigna spokesperson.

Representatives for State Farm, Mutual of Omaha and Blue Cross and Blue Shield of Texas offered similar explanations for instances when their quotes showed Plan A priced higher than Plan G.

When you’re shopping, your own budget is what matters, so compare prices carefully to find the most cost-effective option.

3. Paying too much for add-ons

Some companies offer add-ons for purchase with their Medigap plans. For example, UnitedHealthcare’s “wellness extras” packages include access to a 24/7 nurse line, vision, hearing and dental discounts and a gym membership. (In some locations, these perks are included at no additional cost.)

Sometimes adding these packages might have unexpected effects on the price of the plan.

For example, here’s what it costs to add UnitedHealthcare’s wellness extras — the same package — to two plans for a 65-year-old female nonsmoker in Dallas:

  • Plan G: $6.62 per month ($133.22 for the base plan, or $139.84 with extras).

  • Plan A: $174.80 per month ($130.81 for the base plan, or $305.61 with extras).

These extras might be compelling with Plan G, but the drastically higher price to add the same perks to Plan A is a much worse deal.

On the other hand, there are also scenarios when add-ons make the whole package cheaper.

In Columbus, Ohio, UnitedHealthcare quotes $91.71 per month for Medigap Plan A for a 65-year-old female nonsmoker. But Plan A with wellness extras costs $87.23 — $4.48 cheaper. Even if you never use any of the extras, Plan A with the add-ons would still be a better deal than the option without them.

This article was written by NerdWallet and was originally published by The Associated Press. 

Source: nerdwallet.com

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Aetna Medicare Advantage offers a strong menu of benefits with widely available plans and member experience ratings that are above the industry average. Aetna also covers more than six times the number of Medicare Advantage beneficiaries that Cigna covers.

Cigna Medicare Advantage offers plans in fewer states than Aetna, and Cigna’s overall member experience and star ratings are slightly lower than Aetna’s. Both providers offer Medicare Advantage plans targeted toward veterans, although Cigna’s Courage plans are available in 17 states and Aetna’s Eagle plans are available in 43 states. Cigna does have a plan in most of its markets that offers a Part B premium rebate.

Here’s a look at how Aetna and Cigna compare.

Aetna Medicare Advantage

Medicare.gov or call 800-MEDICARE (800-633-4227, TTY 877-486-2048).

Source: nerdwallet.com