Arranging the correct property insurance coverage might not rank high on your list of financial priorities and, compared with such things as investment and estate planning decisions, questions concerning the language in your homeowners policy could seem hardly worthy of consideration. Even So, the more successful you become, the more complicated your asset-protection needs are likely to be—and the more you have to lose. Suppose, for example, that in addition to your primary residence—a historic home—you also own a house at the beach and a condo in the city.

For instance, let’s assume that you own properties in 3 states, the value of your collection of Old Master paintings has grown quickly and you recently volunteered to serve as a director of of a charity. Nearly every aspect of your situation could cost you dearly.

The laws on insurance vary widely from one state to the next, different types of property demand specialized coverage and collections of art and other unique items could be hard to fully protect. As if this were not enough, serving on the board of a charity could subject you to additional personal liability.

Protecting yourself and your family may mean having to buy extra coverage, although more insurance is not always the best solution. Rather, it is important to review your needs, consider specialized policies and coordinate your cover with other aspects of your financial situation.

Here are 6 different shortcomings which could turn out to be extremely costly.

1.  Having gaps in homeowner’s insurance cover.

Any homeowner needs to review their coverage regularly so that they can keep up with increasing replacement costs. However, insuring different kinds of property in different locales presents additional challenges. If you purchase insurance cover from more than one insurer then you might face contrasting limitations, rules, and plan renewal dates. For instance, the limit of liability on the policy covering a second home could fall short of the minimum on an excess liability plan designed to accompany the insurance cover on your primary home and you could well wind up being responsible for coming up with the difference.

2.  Neglecting the unique characteristics of your property.

One perk of affluence is having the money to own great homes but one of the problems is that they could be hard to insure adequately. Normal homeowner’s coverage will not pay for the hard-to-find materials and craftsmanship that is needed to rebuild that 19th century property that you’ve painstakingly restored. Coastal properties might be subjected to hurricane damage, while a place in the mountains of California could be subject to wildfires or earthquakes.

3.  Under insuring art and collectibles.

Standard homeowner’s policies limit coverage for the loss of furs, antiques, and other valuables. And while you could schedule additional coverage, insuring the real value of a collection of contemporary art will generally mean purchasing a specialized plan addressing several critical issues.

4.  Forgetting to arrange insurance for employees.

When an individual works for you or your family as, for example, a nanny, landscaper or personal assistant you may have a liability for medical expenses and lost wages if the individual is hurt while at work. Several states require household employers to contribute to a workers compensation fund while in other states this is optional. Even So, providing such insurance cover might be obligatory for ensuring your financial well being.

5.  Overlooking your liability as a member of a board of directors.

Excess liability coverage could help to protect you if you are sued as a director of a charity or, for more comprehensive protection, you may want to think about arranging special directors and officers liability insurance.

6.  Not getting regular plan reviews and updates.

Your finances are not static and neither are your insurance needs. The value of a collection may increase, extensive home renovations could mean a sharp rise in the value of your home and the re-titling of assets as part of your estate plan or because of the death of a family member, divorce, or the birth of a child might require changes to your plan. Even without any major events, you probably need a detailed review of all your insurance cover at least every two years.

Whatever the level of homeowner insurance you require equip yourself with the very best free and no obligation homeowners insurance quotes today.