Getting the correct property insurance cover may not come very high up on your list of financial priorities and, compared with things like investment decisions and estate planning issues, questions about the language in your homeowners policy might seem hardly worthy of consideration. Yet, the more successful you become, the more complicated your asset-protection needs are going 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 illustration, let’s assume that your properties are in three different states, the value of your collection of Abstract Expressionist paintings has grown rapidly and you just volunteered to serve as a director of of a charitable organization. Almost every aspect of your situation could cost you dearly.

Insurance laws vary considerably from one state to another, different types of property necessitate specialized coverage and art collections and other unique items could prove hard to protect fully. As if this were not enough, serving on the board of a non-profit organization could subject you to additional personal liability.

Protecting yourself and your family may mean having to purchase extra coverage, although additional insurance is not necessarily the answer. Rather, it is important to review your needs, give some thought to specialized policies and coordinate your cover with other aspects of your financial situation.

Listed below are 6 problems that could turn out to be very costly.

1.  Having gaps in homeowner’s insurance cover.

Any homeowner needs to look at their cover on a regular basis so that they can keep up with growing replacement costs. But, insuring different kinds of property in different locations presents additional challenges. If you take insurance from more than one carrier then you might be faced with different rules, limitations, and policy renewal dates. For example, the liability limit on the policy covering a second home might fall short of the minimum on an excess liability policy intended to accompany the insurance on your primary home and you might end up up being responsible for meeting the difference.

2.  Brushing Aside your property’s unique characteristics.

One perk of wealth is having the money to own grand homes but one of the drawbacks is that they may be hard to insure adequately. Normal homeowner’s coverage won’t pay for the hard-to-find materials and craftsmanship to rebuild that 19th century property which you have painstakingly restored. Houses built on the coast could well be subjected to hurricane damage, while a home in the California mountains might be exposed to earthquakes or wildfires.

3.  Under insuring art and collectibles.

Standard homeowner’s plans limit cover for the loss of antiques, furs, and other valuables. And although you could arrange additional coverage, insuring for the true value of a collection of contemporary art will usually mean buying a specialized policy which addresses several critical issues.

4.  Forgetting to arrange insurance for household employees.

When somebody works for you or your family as, for example, a nanny, landscaper or personal assistant you could have a liability for medical expenses and lost wages if that individual is hurt while at work. A number of states require household employers to pay into a workers compensation fund while in other states this is optional. However, providing such insurance cover may be required for ensuring your financial health.

5.  Ignoring your liability as a board member.

Some form of excess liability coverage might help protect you if you are sued as a director of a charity or, if you prefer to have more comprehensive protection, you might want to consider taking out special directors and officers liability insurance.

6.  Not getting regular plan reviews and updates.

Your financial life is not static and neither are your insurance requirements. The value of your art collection may rise, renovations to your home could mean an increase in the value of your property 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 could require changes to your policy. Even without any significant events, you will almost certainly need to undertake a comprehensive review of all your insurance coverage at least every two years.

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