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If you’re in the top 2-3% of income earners, chances are you’ve enjoyed many privileges that others may only dream about. What many people may not realize, however, is that being a high net worth individual also comes with a unique set of challenges.

For instance, one obstacle you may face is how to obtain adequate insurance to cover the collectibles and valuables you’ve acquired over the years. If your house were to be destroyed or robbed, wouldn’t you want to be sufficiently compensated for what was lost?

Some high earners may feel compelled to purchase almost every piece of furniture and artwork in their home as antiques. Their rationality is that antiques will appreciate rather than depreciate in value. No matter how much your values may appreciate, however, if you’re lacking in adequate insurance, should something tragic occur, your loss could be great.

Regardless of whether you own just a few valuable pieces, or a whole home full of them, it’s likely a regular homeowner’s insurance policy won’t be sufficient.

Consider taking an inventory of all of your most prized valuables, and then meeting with a financial and/or insurance professional about obtaining a specialized property insurance policy that will protect your valuables. As the adage goes, it’s better to be safe than sorry.

One further note: while it’s nice to purchase quality items, putting a good chunk of your finances into valuables such as antiques with the hope they will multiple in worth isn’t always the smartest bet.

For instance, instead of purchasing a $1,000 antique piece simply because you know it will appreciate 5% per year, consider buying a less expensive item and investing the rest for a hopefully higher 8% return.

Bottom line: While the process of obtaining a specialized property insurance policy and taking an inventory of all your valuables may seem overwhelming, it will be worth it in the end. If you’re a high-earner, you’ve undoubtedly worked hard for the money that purchased those possessions. Don’t lose any of that hard work to unnecessary risks.


Author Ron L. Brown, CFP®

Ron is a CERTIFIED FINANCIAL PLANNER™ and President of R.L. Brown Wealth Management. He specializes in retirement, estate, and business planning for professionals and entrepreneurs. Ron assists his clients with creating a financial plan to ensure they are able to live their ideal lifestyle during retirement and leave a strong legacy for their family. Ron has been featured in The Wall Street Journal, US News, Yahoo Finance, Investopedia, and numerous other high profile financial publications.

More posts by Ron L. Brown, CFP®
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