5. Homeowner's and Renter's Insurance

c. Liability claims by others

The third type of coverage provided under your homeowner's policy is liability coverage for you and your family. In today's society, lawsuits are not uncommon even among friends and acquaintances.

Experts agree that you should have at least $300,000 of liability insurance coverage under your homeowner's policy. You also should consider "umbrella liability " insurance to cover damages that exceed your homeowner's insurance.