Imagine this scenario: you win the lottery and start buying the things you’ve always dreamed of. You buy a big beautiful house, a fancy new car, a shiny yacht. You might say to yourself, “Forget about insurance – if something happens to my property, I have enough money to replace it.” This may be true, but you probably haven’t considered liability, especially since you are wealthy and have just become the target of lawsuits, especially frivolous lawsuits. A good general insurance policy would cover this.
Consider this, someone slips in the snow on the front property of your new home. Or someone falls out of your boat. Or run over a bicyclist while driving your car. Or someone who knows they just won the lottery starts a frivolous lawsuit. First of all, you must have a car, home and boat insurance policy to cover liability in these types of situations. But, these types of policies generally only cover up to a million dollars. But since you just won the lottery, people will know that you are rich enough to cover a demand of more than a million dollars. That means, in a successful lawsuit against you, you could be liable for more than $ 1 million. A good general insurance policy would cover this type of risk.
A general insurance policy is designed to provide you with liability protection above and beyond what your typical home, car and boat insurance policies cover. Typical coverage is $ 1 million to $ 5 million above your typical liability coverage, but it could even go as high as $ 10 million or more with an insurance company that specializes in high-net-worth individuals. As a lottery winner, this is probably the best protection you could have for your assets.