A lot of homeowners decide against liability policies, which protects you if someone hurts themselves at your house and decides to sue you. People who elect to have liability insurance often receive $300,000 in coverage, but it only costs about $25 more to have $500,000 in coverage. Most liability policies top out at $1 million, but homeowners can buy excess liability policies, also known as umbrella policies, which give you an additional $1 million in coverage. Umbrella policies may seem excessive, but they make a lot of sense for people with pools, where there is a threat of drowning. (For more information about umbrella insurance, see  

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