From the fire-ravaged streets of 17th-century London to today’s increasingly uncertain financial climate, one fact remains unchanged: insurance remains the first line of defense for protecting wealth and legacy. While modern policyholders may feel frustrated by rising premiums and shrinking coverage, the value of being properly insured cannot be overstated, especially for Maryland residents seeking to protect their families, assets, and futures.
Why Insurance Still Matters
The U.S. insurance market – worth an estimated $1.7 trillion – touches every aspect of daily life, safeguarding homes, vehicles, businesses, and more. But as coverage costs climb and policy terms tighten, it’s tempting to scale back or forgo insurance altogether. That instinct, while understandable, can be dangerously short-sighted. In reality, insurance remains the first line of defense for protecting wealth and legacy, ensuring that what you’ve built isn’t lost to disaster, liability, or litigation.
Let’s explore how various types of insurance continue to play critical roles in preserving your assets and supporting your estate plan.
Homeowner’s Insurance: Protecting Your Biggest Asset
In 2024, over two-thirds of homeowners saw their insurance rates go up, and many received nonrenewal notices. While dissatisfaction grows, one truth persists: if you own a home, you cannot afford to be underinsured or worse, uninsured.
Why it matters:
Your home is likely your largest asset. Without sufficient coverage, a fire, storm, or liability claim could wipe out years of investment and rob your heirs of their inheritance.
Estate Planning Connection:
Homeowner’s insurance protects your ability to pass your property to your beneficiaries intact. As rebuild costs rise, make sure your policy keeps pace to avoid leaving your loved ones with a financial mess instead of a legacy.
Renter’s Insurance: Affordable Protection for Your Belongings
As more Marylanders choose to rent, either by choice or necessity, renter’s insurance offers a budget-friendly way to protect valuables and avoid liability headaches. Yet only about 37% of renters have this basic coverage.
Why it matters:
For as little as $15–$25 per month, renter’s insurance can cover thousands of dollars in electronics, heirlooms, and furniture, not to mention liability for injuries or damage.
Estate Planning Connection:
Whether you rent or own, your possessions still form part of your estate. Proper coverage ensures they can be passed on or replaced if lost, preserving your financial story and your family’s peace of mind.
Car Insurance: Your Roadside Safeguard
With car insurance premiums rising 7.5% in 2025 alone, some drivers are dropping coverage entirely. But doing so exposes them and their estates to serious legal and financial risks.
Why it matters:
Car accidents can lead to lawsuits, medical expenses, or claims that far exceed the value of your vehicle. Without adequate coverage, your personal savings or even estate assets may be used to pay for damages.
Estate Planning Connection:
A lawsuit from a car accident could drain funds intended for your beneficiaries. Ensuring proper auto insurance, including uninsured/underinsured motorist coverage, can protect your estate from posthumous liability.
Umbrella Policies: An Extra Layer of Security
In a world where million-dollar lawsuits are increasingly common, umbrella insurance offers powerful protection at an affordable price, typically around $200 annually for $1 million in coverage.
Why it matters:
If you face a liability claim that exceeds your home or auto policy limits, umbrella coverage picks up the difference. This could be crucial if someone is injured on your property or sues you for defamation or negligence.
Estate Planning Connection:
When insurance remains the first line of defense for protecting wealth and legacy, umbrella coverage stands as the final safety net, preserving your hard-earned assets for future generations, rather than losing them to a court judgment.
Business Insurance: Safeguarding Your Livelihood
Roughly 75% of small businesses are underinsured, yet many families rely on these businesses as their primary source of income and long-term wealth. Inadequate coverage leaves business owners vulnerable to devastating losses.
Why it matters:
From lawsuits and property damage to cyberattacks and employee injuries, business insurance is essential for continuity and crisis management.
Estate Planning Connection:
For business owners, the enterprise itself is often a key estate asset. Insurance helps protect the business’s value, support succession planning, and ensure your family continues to benefit from the venture you’ve built.
Plan Ahead: Insurance Is Part of Your Legacy
At HWK Law Group, we believe that estate planning doesn’t stop at wills and trusts. It includes risk management, too. That’s why we encourage our clients to think of insurance not as an annoying expense but as a critical component of your legacy strategy.
When thoughtfully chosen and regularly reviewed, your insurance policies:
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Guard your estate against lawsuits and liabilities
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Help preserve family wealth for future generations
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Ensure continuity for homeownership or a family business
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Protect personal property with both monetary and sentimental value
Remember, insurance remains the first line of defense for protecting wealth and legacy, even in times of economic uncertainty. If you have questions about your current insurance coverage—or how it fits into your estate plan—our team is here to help.
Let’s talk. Schedule a consultation today to ensure you, your loved ones, and your legacy are protected… now and in the future.