Could you have too much insurance coverage?

Yes. Depending on the value of your home or other possessions, you may be paying for more coverage than you really need, or for certain kinds of coverage that you are unlikely to ever use.

• Maybe you live very simply: you rent an apartment and have very few possessions. If so, the cost of insuring your possessions may be high compared to the cost of replacing them. If that’s the case for you, you might need little to no insurance at all.
• If you own your home, but have few possessions, you might need only “dwelling insurance,” a less expensive policy that protects the valuable asset or building itself but not the contents.
• However, you may still be asked for money or sued by someone who suffers an injury or other loss related to you or your home. Liability insurance can help pay these costs.