Chapter 17

Covering Your Assets

IN THIS CHAPTER

check Checking out homeowner’s/renter’s insurance

check Considering automobile insurance

check Understanding umbrella (excess liability) insurance

check Ensuring your estate is handled as you want

In Chapter 16, I discuss the importance of protecting your future income from disability, death, or large, unexpected medical expenses. But you also have to insure major assets that you’ve acquired: your home, your car, and your personal property. You need to protect these assets for two reasons:

  • Your assets are valuable. If you were to suffer a loss, replacing the assets with money out of your own pocket could be a financial catastrophe.
  • A lawsuit can drain your finances. Should someone be injured or killed in your home or because of your car, a lawsuit could be financially devastating.

In this chapter, I explain why, how, and for how much to insure your home, personal property, and vehicle. I also discuss excess liability insurance and how to determine where your money will go in the event of your death.

Insuring Your Home

When you buy a home with a mortgage, ...

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