Julia has always tried to keep her insurance spending under control by purchasing low limits on her policies. Now that her assets and income have grown, she is beginning to reconsider the wisdom of this approach when buying insurance. Julia knows she has a lot more to lose in terms both of property and liability exposures. Last week, she called her insurance agent to discuss raising her policy limits on her home-owner’s and automobile insurance policies. The agent suggested she consider an umbrella liability policy. Julia still wants to be frugal and is considering simply raising the limits on the policies she already has rather than obtaining another policy. Offer your opinions about her thinking.