High Net Worth Individuals (HNWI) often have complicated risk exposures and more intricate insurance requirements. Whether they are more prone to legal action from those who seek to gain a profit from their wealth, or they are uninformed on what type and limits of insurance to obtain, these individuals require NJ Insurance for High Net Worth Individuals that is custom tailored to their circumstances.
Toni Davies, family risk manager and vice president of BB&T Insurance, explains the need for personal excess liability policies for wealthy clients. According to Biz Journals, affluent individuals often choose personal umbrella or personal excess liability policies, which provide expanded coverage and increased protection of their assets beyond what is provided under homeowner and auto insurance policies.
Wealthy clients often need coverage for household staff such as maids, cooks, drivers, nannies, and gardeners. In addition, homes, boats, and other vehicles may need to be covered. Further, people in the home, including children, often need protection against potential liability exposures due to driving, social media usage, and lifestyles.
HNWI are often underinsured, as a large number of these clients have obtained first generation wealth and their affluence has outgrown their policies. Investopedia states that even if they are insured, most don’t do the leg work to find out what a possession’s actual market value is; the insurance doesn’t fit the possession. While many are none the wiser, it is important to discuss hobbies and possessions with your local insurance agent to determine what needs coverage.
Lastly, homeowners and estate taxes are an essential component to consider for affluent individuals. As estate taxes average about 50% of net worth, if the individual passes away without proper insurance coverage, the estate’s entire value will be subjected to taxing. What’s more, multiple homes and expensive assets within the properties should be included in the homeowner’s policy, as well.
As Davies states “Everything is insurable; it’s just going to be priced out differently. And what your occupation is can determine the rate, as well.”
At Tri-State Insurance Agency, we understand the unique risk exposures that affluent individuals face. Our customizable coverage, offered through our partner carrier Chubb Masterpiece, allows for tailored solutions that are written specifically for you, your potential exposures, and your financial circumstances. For more information regarding our products, we invite you to contact us today at (888) 990-0526.