Insuring Your Assets: A Guide to Home, Renter's, Auto Insurance and Umbrella

By: Tanya Frias, CFP®, ChSNC®

Published: May 2, 2023

📂 Financial Education

Written for:

✅ Early Career Physicians

✅ Mid Career Physicians

✅ Established Professionals

As a physician, you have worked hard to build your wealth and assets, so it's crucial to protect them. Remember - none of the following insurances discussed below will help you against professional liability - you need malpractice insurance for that. You need the following insurances to protect you for liability outside of the clinic/hospital/operating room.

Accidents can happen anytime, and insuring your home, rental property, and automobiles can save you from significant financial loss. In this article, we will discuss the importance of insurance and provide a guide to help you choose the right coverage.

Why is insurance important?

Insurance provides financial protection against unforeseen events that can lead to significant financial loss. Home insurance covers damages or loss of property due to natural disasters, theft, or other unforeseen events. Renter's insurance covers loss of personal property and provides liability coverage for accidents that occur within the rental property. Auto insurance covers damages or loss of vehicles due to accidents, theft, or natural disasters.

Home Insurance

Home insurance is essential, and most mortgage lenders require borrowers to have it. Homeowners insurance protects your property and provides liability coverage for accidents that occur within your property. Some policies also cover loss of personal property and damages caused by natural disasters such as fires, floods, or earthquakes.

When choosing a home insurance policy, consider the coverage limit and deductible. The coverage limit is the maximum amount that the insurance company will pay out in the event of a claim. The deductible is the amount you pay out of pocket before the insurance company starts covering the costs.

Renter's Insurance

Renter's insurance is similar to homeowners insurance but is designed for renters. It covers loss of personal property and provides liability coverage for accidents that occur within the rental property. Some policies also cover temporary living expenses in case you are unable to stay in your rental property due to damage or loss.

When choosing a renter's insurance policy, consider the coverage limit and deductible, just like in home insurance. You should also check if the policy covers loss of personal property caused by natural disasters.

Auto Insurance

Auto insurance is a legal requirement in most states, and it covers damages or loss of vehicles due to accidents, theft, or natural disasters. Auto insurance also provides liability coverage for accidents that cause injury or property damage to other people.

When choosing an auto insurance policy, consider the coverage limit and deductible. You should also check if the policy covers damages caused by natural disasters or theft. If you have a high-value car, you might want to consider comprehensive coverage, which covers damages caused by incidents other than accidents, such as theft or vandalism.

Umbrella Insurance

Umbrella insurance is a type of liability insurance that provides additional coverage beyond what your homeowners or auto insurance policies typically offer. It can be a valuable asset for protecting your assets and finances in the event of a lawsuit or other unforeseen event.

Here are some of the reasons why you might need umbrella insurance:

  • Your current insurance policies may not have enough coverage. The liability limits on your homeowners or auto insurance policies may not be enough to cover the costs of a lawsuit, especially if the damages are significant. Umbrella insurance can provide additional coverage to ensure that you are fully protected.

  • You have a lot of assets to protect. If you own a home, a car, or other valuable assets, you may want to consider umbrella insurance to protect them in the event of a lawsuit. Umbrella insurance can provide coverage for things like medical expenses, property damage, and lost wages.

Insurance is an essential part of protecting your wealth and assets. Home insurance, renter's insurance, and auto insurance provide financial protection against unforeseen events that can lead to significant financial loss. When choosing an insurance policy, consider the coverage limit and deductible and make sure you are adequately covered. By taking the time to understand your insurance needs and finding the right coverage, you can rest assured that your assets are well-protected. 

Don't forget to regularly review your coverage to ensure that it still meets your needs. Andwise offers free access to financial planning and monitoring software to help you manage your insurance and other financial needs.

Stay In The Loop

Join 1000+ physicians who receive our monthly newsletter and stay up to date on our community events, resources, and tools.