The rich and famous became so through hard work and dedication. But when it comes to protecting their wealth from risk, they often don't have a clue.

"They don't see their risks at all," Clement says flatly.

Consider her new client who lives in a $10 million condominium in New York City. "I looked at his program and he has a renters policy!" she says. "No coverage for the inside structure: floors, walls, countertops, all that. So we look at his car and he's insured with Geico!"

No disrespect intended to Geico, but mass-market policies are designed for Main Street, not the Manhattan elite.

An ACE white paper puts it succinctly: "(The rich) are overinsuring against minor threats, while underinsuring against major ones."

On the first count, they carry low minimums on their homeowners and auto policies, even though they are reluctant to report a claim for fear their rates will increase and would save substantially by self-insuring accident repairs.

On the second count, their low home and auto policy limits can leave a gap of $200,000 to $300,000 before their umbrella policy kicks in, meaning they're unwittingly self-insuring that amount.