There are few absolute rules in life but we try to prepare for the unexpected as much as we can. One thing we have some controlover is the type and amount of insurance we should carry. Ideally, you should carry four types of insurance: property/casualty; life; medical; and disability. Property/Casualty Insurance. This type of insurance protects your home, autos and other property you own to ensure that they can be repaired or replaced. The casualty insurance will protect you if you are at fault for causing the need for repair or replacement. Another protective insurance you may want to consider is an umbrella liabilty policy. An umbrella policy fills in the gaps for your homeowners and auto policies if their coverage is insufficient. For example, if you have a $10,000 liability coverage on your auto insurance policy but you, unfortunately, are at fault in an auto accident that causes $30,000 worth of damage to another person's property. Your umbrella policy would take effefct and provide one more layer of liabilty protection. An umbrella policy is relatively inexpensive when compared to most other types of liability insurance.