Broker Check


| July 11, 2023

Continuing through CovingtonAlsina’s Hierarchy of Financial Priorities, todays is all about asset protection, which is just a fancy way of saying insurance.  We’ll do a high-level overview today, and dive deeper into some sections in later columns.

We start with home and auto insurance coverage, also referred to as property and casualty, or P&C.  We generally recommend auto liability coverage of $250,000 per person/$500,000 per accident, with uninsured/underinsured coverage to match. We recommend this solely to protect you from reckless drivers who don’t have good insurance, not because we think you’re a bad driver.

For your homeowner’s insurance, you should have at least $100,000 in liability coverage.  Check that you have sewer/septic back-up coverage.  You may want to consider floor insurance as well. Look for replacement value coverage for your possessions and review the limits for individual items and categories.  For example, jewelry usually has both a per-item and a total maximum covered amount.

If you have more substantial assets, a high income, or young drivers, an umbrella policy should be discussed with your agent.  Sold in increments of a million dollars, the umbrella sits over your home, auto and other insurance (think boat or RV) to provide additional liability protection.  If you’re renting, you also need coverage for your possessions and liability coverage.

Next, we look at disability insurance.  Disability insurance protects your ability to earn a living and pays benefits if you are unable to work due to illness or injury. Most larger employers provide this coverage.

Health insurance is also usually obtained through your employer, although many people now access coverage through the Health Exchange. While it’s important to compare plans and prices, we usually recommend High Deductible Health Plans for their low premiums and ability to open a Health Savings Account, the only triple-tax preferred savings plan.

Life insurance is important if someone is reliant on your income, or on the unpaid work you do to keep the household running.  We start with a rough estimate of a million dollars in coverage for every $40-50,000 of income you need to replace.  For most families, term insurance can meet your insurance needs.

Finally, we consider long-term care insurance. This insurance provides benefits if you are unable to perform two activities of daily living (eating, dressing, bathing, toileting, transferring) without assistance, or are diagnosed with dementia.   For most young families, this is not a high priority, but becomes more important as you age, and other goals have been funded or are on track to be met.

You can find great resources, calculators, and register for our educational events on our website at  If you have questions, email us at  We’ll continue in the next column with a discussion on retirement savings.

CovingtonAlsina is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.