Arranging the correct home insurance cover may not come very high up on your list of priorities and, alongside investment decisions and estate planning issues, questions concerning the language in your homeowners insurance could seem hardly worthy of consideration. but, the more successful you are, the more detailed 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 illustration, let’s say that you own properties in three states, the value of your collection of Abstract Expressionist paintings has risen quickly and you recently volunteered to serve as a director of of a charity. Almost every aspect of your situation could cost you dearly.

The laws on insurance vary widely from one state to another, different sorts of property necessitate specialized coverage and art collections and other unique items might prove difficult to protect fully. In The Meantime, serving on the board of a charity might land you with additional personal liability.

Safeguarding yourself and your family may mean purchasing extra coverage, although additional insurance isn’t necessarily the answer. Instead, it’s vital to review all of your needs, think about specialized policies and coordinate your insurance cover with other aspects of your financial situation.

Here are 6 shortcoming that could turn out to be extremely costly.

1.  Leaving gaps in your homeowner’s insurance coverage.

Homeowners need to look at their cover on a regular basis to keep up with growing replacement costs. However, insuring different kinds of property in different locales poses special challenges. If you purchase insurance cover from more than one carrier you coulf be faced with contrasting limitations, rules, and plan renewal dates. For example, the limit of liability on the policy for a second home may fall below the minimum on an excess liability plan designed to complement the insurance cover on your primary home and you may wind up being responsible for meeting the difference.

2.  Neglecting your property’s unique characteristics.

One of the perks of affluence is having the means to own exceptional homes but one of the drawbacks is that they could be hard to insure adequately. Ordinary homeowner’s coverage will not pay for the hard-to-find materials and craftsmanship which is needed to rebuild that 19th century property which you have lovingly restored. Homes situated on the coast could well be subjected to hurricane damage, while a place in the California mountains could be at risk from wildfires or earthquakes.

3.  Inadequate insurance for collectibles and art.

Normal homeowner’s policies limit coverage for the loss of furs, antiques, and other valuables. And although you could schedule additional coverage, insuring the true value of a collection of contemporary art will usually mean taking out a specialized policy which addresses a number of critical issues.

4.  Omitting to organize insurance for employees.

When a person works for you as, for example, a nanny, landscaper or personal assistant you could have a liability for lost wages and medical expenses if that worker is hurt while at work. Various states require household employers to contribute to a workers compensation fund while in other states it’s optional. Nonetheless, providing such insurance might be required for ensuring your financial well being.

5.  Disregarding your liability as a board member.

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

6.  Not getting frequent policy reviews and updates.

Your finances are not static and neither are your needs for insurance. The value of your art collection may increase, extensive home renovations could mean a sharp rise in the value of your property and the re-titling of assets as part of your estate plan or as a result of divorce, a death in the family, or the birth of a child may necessitate changes to your policy. Even without any significant events, you will almost certainly need to carry out a review of your insurance coverage at least every two years.