The Insurance Gaps High-Income Tech Employees Miss

Tech compensation moves fast. Base salary, bonus, RSUs, ESPP — within a few years, someone can go from "new grad" to a genuinely high-net-worth household. Insurance doesn't move that fast on its own, and a predictable set of gaps opens up. Here are the five we see most often, and what to do about each.

1. No personal umbrella — or one that's too small

This is the most common and most important. A personal umbrella adds liability protection above your home and auto policies, and it should be sized to your net worth. Many high earners have none, or a $1M policy left over from when $1M was their whole net worth. Fix: carry an umbrella at least equal to your net worth; it's roughly $150–$300 per million per year.

2. A home insured to the wrong number

If you bought in a competitive market, your home may be insured to its purchase price or an old appraisal — not what it would cost to rebuild today. Fix: confirm your dwelling limit reflects current rebuild cost, and that you're with a carrier suited to a high-value home.

3. Auto liability limits that can't support an umbrella

Umbrella carriers require minimum underlying limits — typically $250K/$500K auto. Many people still carry the limits they started with, which leaves a gap beneath the umbrella. Fix: raise underlying limits to meet the umbrella's requirements; it's inexpensive.

4. Valuables that aren't actually covered

Engagement rings, watches, and other valuables are capped low on a standard homeowners policy — often $1,500–$5,000 per category. Fix: schedule high-value items individually, usually with no deductible.

5. Relying entirely on employer life and disability

Group coverage through work is convenient but limited: life is typically 1–2× salary and isn't portable, and disability may not reflect your full income. Fix: confirm your life and disability coverage match your actual obligations and earnings, with individual policies where the group falls short.

The pattern underneath all five

Every one of these has the same root cause: compensation grew faster than coverage, and there was never a single moment that forced a review. The fix is the same too — one coordinated review that re-bases everything on the net worth and income you actually have now, not when you set up your policies.

Frequently asked questions

What insurance do high-income tech employees most often overlook? A personal umbrella policy sized to net worth is the most overlooked, followed by insuring the home to rebuild cost and scheduling valuables. These are the gaps equity-driven wealth tends to leave.

I have great benefits at work — isn't that enough? Employer benefits cover health, some life, and disability. They don't cover your home, auto, personal liability (umbrella), or valuables — that side is entirely yours and grows more important as your net worth climbs.

How much does it cost to close these gaps? Less than most people expect. A personal umbrella is a few hundred dollars a year; raising underlying limits and scheduling valuables are modest add-ons. The protection is large relative to the cost.

More in this series: At What Net Worth Do You Actually Need Umbrella Insurance? · Your Advisor Said 'Get Umbrella Insurance.' Here's How Much.

Related: Coverage Gap Calculator → · The Equity-Wealthy Household’s Insurance Guide →

Because protecting sudden or equity-driven wealth spans more than one policy, it's worth reading The Underlying Limits Your Umbrella Requires and Is Your Home Underinsured? How to Find the Gap alongside this.

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