ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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High net-worth individuals with expensive assets
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Anyone who owns a number of assets
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Families with high incomes
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Anyone who already has basic liability insurance
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Detailed explanation-1: -It is called extra liability insurance that is planned to protect an individual from any lawsuits or claims. The added coverage offered by the policy is mainly useful to high net worth businessmen who own expensive assets and are at risk of being sued.
Detailed explanation-2: -High-net-worth insurance or high-value insurance is coverage that’s designed for wealthy individuals and families. The coverage limits for this kind of insurance may be higher than your typical homeowners’ insurance policy. That’s meant to reflect the unique needs of those with a higher net worth.
Detailed explanation-3: -If your net worth exceeds the maximum liability coverage you can get via your standard insurance policies, you’ll need an umbrella policy to help protect your assets in case you’re found liable for an incident that has devastating financial repercussions.
Detailed explanation-4: -Umbrella liability coverage protects against the potential financial fallout of certain types of unforeseen events that lead to property damage or injury, for which the policyholder is held responsible.
Detailed explanation-5: -The rule of thumb for umbrella insurance is to buy as much coverage as your total net worth, factoring in assets like your home, car, investments, and even your retirement accounts. For example, if you own assets worth $1 million, then you should purchase at least $1 million in umbrella coverage.