And the Insurance Bureau of Canada says making sure one has adequate amounts of home and auto insurance should be considered in those plans. IBC recommends a few ways consumers can go about this.

One of them is for policyholders to get in touch with their insurance representative. A plan can then be drawn between the customer and licensed insurance advisor that ensures the proper coverage is in place so individuals can ensure their wealth is not jeopardized in the event of an emergency.

Another tip the IBC advises doing is evaluating their risks. Consumers should try and determine the maximum amount of loss they would consider acceptable and which would be too much to endure. They should then conduct cost-benefit analysis to determine how much coverage they should purchase to offset those risks.

The source also advises consumers to become more financially literate. IBC recently developed a quiz at its website that will better inform policyholders about how much they know about insurance.