Answer: All insurance is designed to pay for a loss you cannot afford to take yourself. When trying to determine how much insurance you should buy, you need to examine what assets you have that you need to protect. Are you young, just starting a career and really have no assets yet? Do you own your own home? Do you own your own business? Are you a professional making a large income? Do you have significant assets?
There is no one easy answer to this question. Please feel free to call me at (775) 256-5757 and discuss this topic. You can also discuss it with your insurance agent to make sure you have as much insurance as you need. Not to leave you without a concrete example, homeowners should have no less coverage than $100/300,000BI/$100,000PD coverage (or $300,000 combined single limit coverage…a coverage discussed next) and should consider an umbrella or excess liability policy.