The most simple answer is…It depends.
Do you rent or own? How many vehicles do you have? What is your net worth?…
There are many iterations of questions like this. So many in fact that the list is nearly endless and it is nearly impossible for an individual without training to be aware of all the moving pieces. This is why it is extremely helpful to get and retain a quality agent. That way you have someone to look out for you and make sure your protection is up to date so you can live.
As an insurance professional, I’ve, found it helpful to boil down the individual questions to a summary one…
What could a catastrophe cost you?
If you are a poor college grad living with a roommate and broke, there frankly is not much to lose if you lost everything. On the other hand, if you have a good job, a family, a house or two, and a few toys, you’ll want much more thorough protection at higher limits because when Murphy’s law strikes you’ll want to be prepared since it is liable to cost you more.
The last thing to consider is,
what is the most likely disaster to strike?
A lot of this is dependent on where you live. Here in CO we worry about hail and wind as well as ice and snow. You’ll also want to consider things like are you in a flood-plain or are you in the middle of trees. Not only do these factors influence the type and amount of coverage you need they also play a part in the rates you pay.
One thing we often overlook is death. Every disaster has a percent likelihood attached to it. Death happens to be 100% chance. It is simply a matter of when and how. With this in mind, life insurance at every stage of life is the most important coverage to have. As with all other coverages you are best off consulting an insurance professional to get the right type and amount of life coverage.