High-net-worth individuals (HWNI) face unique insurance challenges and tend to gravitate towards different insurance products that suit their specialized risk profiles. Wealthy individuals have relatively more complex risk management needs and relatively less obvious needs for catastrophic protection. The real risk might be overinsuring against minor threats and underinsuring against major ones. The benefits of a high-net-worth insurance policy are largely centered around smoothing out the relationship between needs and coverage.
Let’s take a closer look at High-Value Homeowners Insurance and whether it is the right coverage for you.
High-Value Assets
Are your high-valued home and high-valued assets properly covered? The last thing you want is to be ill-equipped in a time of need. Do not underestimate the value of a properly fitting home insurance coverage. HNWI often have expensive possessions and hobbies – wine collections, art, racehorses, yachts, and classic cars, to name just a few. Even if they are insured, most individuals and families are not aware of what a possession’s actual market value is and the insurance does not fit the possession.
Home insurance for high net worth individuals will begin by noting all hard-to-replace possessions and appraising them accurately, offering solutions that cover the correlating risks. A strong policy can even safeguard against cleaning accidents or theft by the cleaning staff. You could also opt to cover assets against lawsuits from employees or service agencies.
Expanded Policy Coverages and Limits
It is crucial for high net worth individuals to have proper home insurance that suits their home and its features. The most important and most common benefit of opting for high-value home insurance is expanded coverage limits, both for your property as a whole and individual items. Expanded coverage limits are especially common for contents subject to specific limits, like jewelry, art, and cash. High-worth insurance policies include higher limits without any special endorsements required and often provide extra endorsements for natural disasters, such as flooding and earthquakes.
Some expanded limits include:
- Structure coverage
- Second home coverage
- Sewer and drain backup coverage
- Home contents covered for all perils
- Scheduled items like jewelry, firearms, currency, and art
- Additional living expenses
- Landscaping coverage
- Liability coverage
Coverage Where it Counts
For many high net-worth-individuals, the home tends to be the most valuable asset and the most important to cover. In most states, high-value homeowners insurance coverage contains an allowance for jewelry or other lost valuables. HNWIs should maximize their benefits whenever possible within fewer insurance products, if only for simplicity.
Those with multiple homes in multiple markets should probably find individual coverage for each property. State and local ordinances, regulations, and homeowners associations all influence the possible and necessary benefits required in a policy.
About Provident Protection Plus
At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.