Getting the right property and casualty insurance coverage may not be at the top of your financial priorities. However, as your wealth grows, so do your asset-protection needs. With more assets comes greater risk, especially when it comes to protecting unique properties and collections. Here are six common shortcomings that could prove costly if not addressed.

1. Gaps in Homeowners Coverage
Homeowners should regularly review their coverage to keep up with rising replacement costs. If you own properties in different states, managing multiple policies can be challenging. Differences in rules, limitations, and policy renewal dates can create gaps. For instance, if the liability limit on your second home’s policy is lower than your primary home’s excess liability policy, you could be liable for the shortfall.

2. Ignoring Unique Property Characteristics
Exceptional homes often require specialized coverage. Standard homeowners policies may not adequately cover the materials and craftsmanship needed to rebuild a historic property. Additionally, coastal homes face hurricane risks, while mountain properties are susceptible to wildfires and earthquakes. City condos may need tailored policies based on their building associations.

3. Underinsuring Art and Collectibles
Standard homeowners policies typically limit coverage for antiques, furs, and collectibles. While you can schedule additional coverage, insuring the true value of a contemporary art collection or vintage cars often requires specialized policies. Key considerations include how value is assessed, whether payment is in cash or through restoration, and automatic coverage for new acquisitions.

4. Forgetting to Insure Household Employees
If you employ household staff—such as nannies or landscapers—you could be liable for their medical expenses and lost wages if they're injured on the job. Many states require household employers to pay into a workers' compensation fund, which could be essential for your financial protection. Ensure that any employees who drive your vehicle are included in your auto policy.

5. Neglecting Liability as a Board Member
Serving on a nonprofit board can expose you to additional personal liability. Excess liability coverage can offer some protection, but you might also consider specialized directors and officers liability insurance for more comprehensive coverage.

6. Failing to Review and Update Policies Regularly
Your financial situation is not static, and neither are your insurance needs. Changes in property value, home renovations, or significant life events (like marriage, divorce, or the birth of a child) may necessitate policy adjustments. Aim for a comprehensive review of your insurance coverage at least every two years.

As your assets grow, so should your attention to protecting them. By addressing these common pitfalls and ensuring your insurance coverage is comprehensive and up-to-date, you can safeguard your wealth and peace of mind.