The Equity-Wealthy Household's Insurance Guide (Eastside Seattle)

If most of your wealth arrived through vested company stock — RSUs, ESPP, options — your insurance is almost certainly built for an earlier, smaller version of your life. You didn't have a windfall moment that prompted a review; your net worth just grew, quietly, year over year, while your coverage stayed exactly where you set it.

This guide is the complete version of the conversation we have with equity-wealthy households across the Eastside — Bellevue, Redmond, Sammamish, Kirkland, Issaquah, Mercer Island, and the rest of the corridor. It covers what changes when your wealth is concentrated and liquid, and exactly which gaps to close, in order.

See your own gap first: our Coverage Gap Calculator shows the difference between your net worth and what your liability coverage actually protects, in about 30 seconds.

Why equity wealth breaks the usual insurance math

Insurance is sized to what you have to protect. Most people set their coverage when they had very little — a first apartment, a first car — and never revisit it. Equity compensation defeats that habit completely: there's no closing, no paperwork, no agent calling. The balance in your brokerage account simply gets bigger.

Meanwhile, vested stock is the most exposed kind of wealth there is — liquid, visible, and sitting in a taxable account with your name on it. In a serious lawsuit, that's exactly what a plaintiff's attorney pursues. The more you have, the more you need your liability coverage to grow to match — and it almost never does on its own.

1. Umbrella insurance: the single most important fix

A personal umbrella adds liability protection above your home and auto policies — the layer that stands between a lawsuit and your assets. For equity-wealthy households it's the highest-leverage coverage there is, and one of the cheapest.

• How much: carry a limit at least equal to your net worth — more if you have significant future earnings. A $2–3M net worth usually means $2M–$5M of umbrella.
• Cost: roughly $150–$300 for the first $1M, and $75–$100 per additional million per year.
• Underlying limits: an umbrella only attaches above minimum limits — typically $300K home liability and $250K/$500K auto. Raise those first if they're low.

Spoke posts: How much umbrella do you need → · Is $1M enough? →

Not sure where you stand? The Coverage Gap Calculator sizes it for you.

2. High-value home coverage: insured to rebuild, not to purchase

Eastside homes are expensive and were often bought in competitive markets. Two things go wrong:

• Wrong number. Your dwelling limit should reflect what it costs to rebuild today — not your purchase price or market value. Construction costs have risen sharply; many policies haven't kept up.
• Wrong policy. High-value homes are often better served by carriers built for them (with guaranteed or extended replacement cost, cash-out options, and broader coverage) than by a standard policy.

Spoke posts: Replacement cost vs market value → · Guaranteed replacement cost explained →

3. What concentrated equity specifically requires

Beyond the umbrella, concentrated stock wealth has its own implications:

• Count it in your net worth. Vested equity and ESPP balances are part of what you're protecting, even if they don't feel spendable.
• Coordinate with your advisors. Insurance is the first layer of asset protection; titling, entities, and trusts are your attorney's and advisor's domain. They work together.
• Revisit on every wealth event. Each vesting cliff, sale, or IPO changes the numbers — the coverage review should follow.

Spoke posts: Asset protection for stock compensation → · What your ESPP means for your insurance →

4. Auto, valuables, and specialty assets

• Auto: make sure liability limits support your umbrella; agreed-value coverage for collector or high-end vehicles.
• Valuables: jewelry, watches, art, and collections are capped low on a standard policy (often $1,500–$5,000) and should be scheduled separately.
• Toys: boats, second homes, and other purchases that tend to follow a liquidity event should be insured from day one.

Spoke posts: Jewelry insurance vs homeowners → · Collector car agreed value →

5. Protecting your income: life and disability

For high earners, your income is your largest asset for years to come.

• Life insurance: employer group coverage is typically 1–2× salary and isn't portable. A household relying on one or two high incomes usually needs more, owned individually.
• Disability insurance: protects the income that funds everything else. Worth confirming your coverage reflects your current earnings.

Spoke posts: Is your work life insurance enough? → · Disability insurance for tech professionals →

6. The Eastside angle: local risks worth knowing

• Earthquake: not covered by standard homeowners, and the Seattle area sits on real seismic risk — worth a deliberate decision, not a default.
• Wildfire & non-renewals: rising wildfire exposure is reshaping the market even here; some carriers are tightening.
• Water & waterfront: flood is separate from homeowners; lakefront and view properties carry their own considerations.

Spoke posts: Earthquake insurance Seattle → · Flood vs water damage →

7. Why an independent broker matters here

A captive agent sells one company's products. An independent broker shops the whole market — including the carriers built specifically for high-value and equity-wealthy households — and audits what you already have for gaps. For a non-standard balance sheet, that difference is the whole point.

What to do, in order

1. Run the Coverage Gap Calculator to see your liability gap.
2. Right-size your umbrella and the underlying limits beneath it.
3. Confirm your home is insured to rebuild cost with the right policy type.
4. Schedule your valuables.
5. Check life and disability against your current income.
6. Re-run the whole review after each wealth event.

Frequently asked questions

I'm a tech employee with most of my wealth in company stock — what insurance should I prioritize? Start with a personal umbrella sized to your net worth, sitting on top of adequate home and auto limits. Then confirm your home is insured to rebuild cost and your valuables are scheduled. It's the highest-impact sequence for equity-wealthy households.

Does my vested stock count toward how much coverage I need? Yes. Vested equity and ESPP balances are part of your net worth and are reachable in a lawsuit, so they should be included when sizing your umbrella and liability coverage.

Do I need a special insurer because my home is on the Eastside and high-value? Often, yes. High-value homes are usually better served by carriers designed for them — with guaranteed/extended replacement cost and broader coverage — than by a standard policy. An independent broker can place you with the right one.

How often should I review all of this? Annually at minimum, and after any meaningful wealth event — a large vesting tranche, a stock sale, an IPO, a home purchase. Those are the moments your exposure jumps.

Trella Insurance is an independent brokerage in Bellevue, WA, built for equity-wealthy and high-asset households across the Eastside. See your coverage gap with the 30-second calculator or request a free review.