High net worth individuals have special needs when it comes to insuring their property and belongings. Building a policy that is right for them takes a professional agent that will ask the right questions to build the right high value insurance policy. We first look at some of the common reasons a client would benefit from working with high net worth insurers. We ask the right questions, building coverages in your policy that will protect high value property which may not be covered under a typical home insurance policy.
Some of the characteristics of clients who should consider high net worth insurance:
- Typically an entrepreneur, business owner, professional (doctor, lawyer, etc.) or corporate executive.
- Owner of one or two well-maintained homes, penthouses, or brownstones that require high value homeowners insurance (where the replacement cost of each is greater than $500,000)
- Owner of new or high-value automobiles
- Owner of newer boats, jet skis, snowmobiles and other high value recreational craft
- Owner of collections or valuables consisting of precious metals or gems (jewelery insurance), high value paintings, sculptures, or other artisan crafts (art insurance), antiques, wine, collector cars or other valuables
- Increased needs for identity theft monitoring and protection
- May travel with family extensively in the United States and abroad
- Typically has personal liability limits of $1 million or more
A client with any of the above factors is a good candidate for high networth insurance. To receive the best coverage for the lifestyle they enjoy, clients should carefully consider each factor above. At InsuranceAgency.com, our professional agents can tailor-fit coverage needs to create a high value property insurance policy that will cover not only the estate, but also the valuables within. Affluent insurance policies that have been designed to fit the needs of a specific household are the best way to assure that every dimension has been considered in the protection of the client’s property.
Unique Coverage for High Value Homeowners:
- Cash Out Option – Under a standard homeowner’s insurance policy, if your home is destroyed by a fire, the insurance company requires you to rebuild your house at the same location to receive the replacement cost limit for your house and personal property. If you choose not to rebuild, you’ll be paid Actual Cash Value, which is calculated as replacement value minus depreciation. Under the Cash Out Option—included on a high net worth home insurance policy—you can receive a check for the full replacement cost for your personal belongings and home without having to rebuild. This leaves you with the option to sell your land and rebuild at another location or keep the money without penalty.
- Special Limits Increased – Under normal homeowners policies there are sublimits for money, coins, securities, stamps, firearms, jewelry, fine arts, silverware and many other valuable items. With a high value house insurance policy, these limits are automatically increased. For example, the sublimit for stolen jewelry on a typical policy is $1,500. On the high valued policy this limit is increased to $50,000.
- Complimentary Appraisals – In the event of a loss, an inventory of your possessions is crucial. Under a standard policy, it’s necessary to prove ownership of the valuables listed in a claim. With a high value home insurance policy, however, a highly trained appraiser will visit your home. This appraiser will help you estimate the cost to rebuild your home as well as documenting home features using measurements, photos, and detailed descriptions. This will serve as a permanent record, helping to streamline the claim process in the event of a loss.
- Valuable Articles Coverage – For high net worth individuals, this coverage may be the most important policy they purchase. Although there are automatically higher sublimits in the high value homeowners insurance policy, the need for high limits and coverage extensions are provided by a valuable articles policy. For instance, your passion may be to collect art. Through high value contents insurance, InsuranceAgency.com can meet the unique need to protect that passion. Jewelry, fine art, antiques…even wine collections and sports memorabilia can be included. Coverage highlights include: breakage of fragile items, lost items, items in vault storage, inflation protection and blanket coverage for items like fine china.
Any client with concerns regarding rare and valuable items or collections not covered by the typical homeowners insurance policy are best served working with high net worth insurance professionals like InsuranceAgency.com.