Insurance and solvency II

Maybe everyone but me knew this, but I'll share in case you were wondering: states do guaranty insurance payouts for most types of insurance. But there are caps that may be below the payout limits you'd have received under your policy; so if your insurance company goes under about the time you have a claim, you may be wildly underinsured.

In Minnesota, for life and health insurance, we'd rely on the Minnesota Life & Health Insurance Guaranty Association which is a statutory entity:

In the event that a member insurer is found to be insolvent and is ordered to be liquidated by a court, the Guaranty Association Act enables the guaranty association to provide protection (up to the limits spelled out in the Act) to Minnesota residents who are holders of life and health insurance policies and individual annuities with the insolvent insurer.

The limit for life insurance is $410,000.

For property and casualty, we have a different association that doesn't have a website, so I can't tell easily what limits are.

Knowing that a) we really can't count on the solvency of our insurance carrier and b) state guaranties may not be sufficient, what is one to do?

[Update: In Texas, the limit for property and casualty is $300,000.]

[Update II: so if the federal government hadn't loaned cash to AIG and if it had needed to declare bankruptcy, then the state of Texas would be on the hook for AIG property and casualty claims from Ike.]