As your wealth builds over the years (hopefully, at least in part, due to the increasing value of the home that we help you buy), so, too, does the risk of losing — or facing a lawsuit arising from — your valuable assets. For example, you should have comprehensive insurance on your home and car(s). Should your home burn to the ground, comprehensive homeowners insurance policy would pay for the cost of rebuilding the home. Likewise, if your car is totaled in an accident, auto insurance should pay to replace the car.

With all types of insurance that you purchase, take the highest deductible that you can comfortably afford. The deductible represents the amount of money that you must pay out of your own pocket when you have a loss for which you file a claim. High deductibles help keep the cost of your coverage low and also eliminate the hassle associated with filing small claims.