When most people think about estate planning, they picture wills, trusts, and taxes. But one of the easiest ways to protect what you’ve worked hard to build—your home, your savings, your business—is often overlooked: insurance.
Even with rising costs and shifting coverage, insurance remains the foundation of financial protection. Here’s how it fits into your asset protection strategy today:
1. Homeowners Insurance: Protecting Your Largest Asset
Homeowners across the country are feeling the pinch—rates are up, coverage is down, and some are even being dropped by their insurers. Still, skipping or skimping on home insurance can be a costly mistake.
What it covers:
Repairs after fires, storms, vandalism, or theft; liability for accidents on your property; and temporary housing if your home becomes unlivable.
Why it matters to your estate plan:
Your home may be your most valuable asset. If it’s underinsured and disaster strikes, the loss could directly impact what you leave to your loved ones.
Tip:
Review your policy regularly. Rising construction costs may mean your current coverage isn’t enough to rebuild.
2. Renter’s Insurance: A Must-Have for Tenants
Renting? You’re not off the hook. Renter’s insurance is inexpensive (often less than $25/month) but provides significant protection.
What it covers:
Theft, fire, and water damage to your belongings; liability if someone is hurt in your space; and temporary living expenses if you’re forced to relocate.
Estate connection:
Even if you rent, your personal property—heirlooms, electronics, and valuables—are part of your estate. Protecting them matters.
Pro tip:
Create a photo inventory of your belongings and estimate replacement values to ensure proper coverage.
3. Car Insurance: Don’t Cut Corners
Car insurance is legally required in most states, but state minimum coverage often isn’t enough—especially with rising premiums and accident costs.
What it covers:
Liability, collision, theft, vandalism, medical expenses, and uninsured motorist incidents.
Estate impact:
Accidents involving your vehicle can lead to lawsuits and liability claims—claims that may reduce the inheritance you intend to leave behind.
Tip:
Review your auto coverage limits and coordinate with your estate planning attorney to address vehicle-related liability.
4. Umbrella Insurance: Extra Coverage for Peace of Mind
If a lawsuit exceeds your existing policy limits, an umbrella policy can protect your savings.
What it covers:
Additional liability protection beyond what home, auto, or renter’s insurance provides. Especially useful in lawsuits involving injury or property damage.
Why it matters:
A $1 million umbrella policy typically costs only a few hundred dollars per year. It’s a smart move for those with significant assets or higher risk exposure.
Who needs it:
Landlords, pet owners, professionals, event hosts, and anyone with a high net worth or multiple properties.
5. Business Insurance: Protect Your Livelihood
If you own a business, insurance isn’t just about compliance—it’s about survival.
What it covers:
General liability for injuries or property damage, property insurance for buildings and equipment, professional liability for service errors, cyber insurance, and business interruption coverage.
Risk alert:
Three out of four small businesses are underinsured. One unexpected lawsuit or disaster can put your entire operation—and your legacy—at risk.
Estate planning angle:
Business insurance plays a key role in protecting income streams, preserving business value, and supporting succession plans for future generations.
Don’t Wait for a Disaster to Get Covered
Insurance doesn’t always feel like a wealth-building tool—until something goes wrong. Then, it becomes essential.
- Review your coverage regularly.
- Work with professionals to tailor policies to your assets and goals.
- Treat insurance as a vital component of your estate plan—not just a monthly expense.
Want to talk about how insurance fits into your estate plan? We can help.
At Jakob Legal, we review your plan holistically to ensure your legacy is protected from all angles.
Want to talk about how insurance fits into your estate plan? We can help.
At Jakob Legal, we review your plan holistically to ensure your legacy is protected from all angles.
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