Home Owners
Home Owners insurance can be used to protect your assets in situations where there is damage to your home, or if someone is injured in your home, or sometimes even for injuries caused by a pet. The reason it is an asset protection tool is because anything you are not insured for, depletes your assets.
Liability coverage covers for many things, such as a slip and fall in your home. It is a relatively inexpensive portion of a Home Owners policy and the liability limits should match your automobile policy. Often people think that they do not need the same coverage because things are less likely to happen in the home, however the same coverage is needed but the premiums are less expensive because it is less likely to happen.
The most common limits are $100,000 but insurers often allow limits to be as high as $1,000,000.
At this point if you are thinking that you have more than $1,000,000 in assets that you want to protect, there are other options for excess liability. The most common option is an Umbrella policy, which we will discuss under Umbrella Policy.