In addition, homeowner's insurance provides liability coverage . An umbrella policy , also called a personal catastrophe policy, supplements your basic personal liability coverage. This added protection also covers you for personal injury claims such as libel, slander, defamation of character, and invasion of property. If you're a business owner, you will probably need this type of liability coverage. Let's focus now on another type of personal property insurance, auto insurance .
Automobile accidents can affect people physically, financially and emotionally.
While automobile insurance cannot eliminate the costs of accidents, it can reduce the financial impact. If that's not reason enough to carry auto insurance, there's always the financial responsibility law . This is state legislation requiring drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident. This means that, by state law, you may be required to carry at least a minimal auto insurance policy. Most of the money automobile insurance companies pay in claims goes for legal expenses of injury lawsuits, medical expenses, and related costs.