How much insurance do you need?

For everyone it is different. The government has set minimum amounts for Public Liability and Property Damage (PLPD) for when you want to drive a vehicle down the road. You can purchase from the minimum on up.

If you are a businessman or a wealthy person then likely you will consider higher limits. Why? Unfortunately in insurance claims the rule of thumb is that the claim will follow the money. The claimant will sue everyone related to the case and will be particularly careful to focus on the person or business with likely a higher insurance limit.

This has brought to bear the question that if you insured for lesser limits then likely you would not be sued for higher amounts. Unfortunately you can be pursued into civil court if your insurance does not meet the full amount of the claim.

You need to consider Risk Management principles. You need to determine the exposure to your home or tenants, business, autmobile and possible professional liability. Then you determine the risk and think about ways to control or avoid the bad things happening. Some things you cannot avoid or control completely. This is where insurance usually comes into the picture.

If you are a professional then you need to be sure that you have adequate funds to protect your professional reputation. Lawyers can be very expensive. If you are a homeowner then you could be thinking about identity theft and title theft protection. A tenant would be concerned about title theft and tenant's legal liability.

Your insurance needs will change as your business operation expands or contracts. Your home could now include some fine arts and sporting equipment that is high valued. You might now have a cabin cruiser to be moved to the cabin at the lake.

Careful research and consultation with an adviser will help you determine how much insurance you could consider.

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