What is high net worth insurance?
High net worth insurance protects those with substantial assets and wealth. It goes beyond traditional insurance coverage to protect and insure higher value assets. What is insured can range from luxury homes to jewelry and art to excess liability insurance that helps extend the limits of traditional insurance coverage. Trucordia provides options for clients in need of protecting high value assets.
Coverages for high net worth individuals
High net worth house insurance
Also referred to as high value home insurance, high net worth insurance is designed for homes typically over $1 million. This can be necessary to ensure higher coverage limits that protect the valuable assets and unique or higher quality materials of a luxury home. When investing so much in your home, it’s critical to protect it against incidents such as fires, burglaries, or other unexpected events.
Luxury and vintage vehicles insurance
Luxury and vintage vehicles are purchased at a higher cost and most likely have parts that require higher costs to repair. Luxury and vintage vehicles insurance can cover the standard vehicle insurance needs, such as liability coverage, collision coverage, and personal injury protection, but with details and at a cost specified to higher-value vehicles. Vintage cars specifically are often categorized as 20 to 25 years old and policies can be adjusted to consider the vehicle’s rarity and condition. There may also be stipulations from the vintage vehicle insurer around how the car is stored and how often it is driven.
Collectibles insurance
Collectibles can include a variety of rare and treasured items, such as vintage artifacts and rarities or valuable and limited-edition comic books. Whatever the collectible may be, collectibles insurance can be tailored to protect these unique assets from natural disasters, theft, or even being transported from seller to buyer. The cost and coverage will depend on the value and breadth of the collection.
Art insurance
Art can be highly valuable due to an artist of note creating it or historical value. Art insurance helps protect valuable pieces against things like theft, fire, vandalism, natural disasters, or even protecting galleries or exhibitions who rely on selling art for income. Often, art insurance will have no deductible so that there is complete coverage for the art.
Wine collection insurance
Wine is another asset that can be quite valuable depending on the age or rarity of the wine, as well as the size of the wine collection. Wine insurance can be purchased for the individual wine connoisseur, wineries, or investors. A valuable wine collection could be susceptible to theft, damage during transit, natural disasters, or even if wine cooling or humidity systems break down.
Watercraft and yacht insurance
Watercraft insurance is a broader form of coverage that can include yacht insurance and watercraft insurance, such as jet skis or wave runners. Watercrafts and yachts are higher value assets that need specific and often a greater degree of coverage. Common coverage areas can include liability insurance, protection against physical damage, theft and vandalism, and medical expenses that may occur because of accidents.
Excess liability insurance
Excess liability insurance extends the coverage of normal insurance coverage. This can be applied to both personal and commercial insurance policies. Excess liability insurance is often purchased in order to ensure plenty of coverage is in place, such as extending a policy so it goes over $1 million. It can also help cover claims outside of primary insurance coverage.
What kind of insurance services do high net worth individuals need?
There are a variety of insurance options to consider for high net worth individuals. The kind of coverage will depend on the high-value assets that require protection. For instance, high net worth insurance can include jewelry insurance for a valuable inherited jewelry collection, luxury home insurance for both a primary home and vacation property, or yacht insurance for a large and high-value yacht. High net worth individuals may also consider coverage against ransom or extortion situations, or more extensive and higher cost insurance to protect against lawsuits.
Benefits of high net worth insurance
Normal or typical insurance plans will likely not cover high-value assets and other considerations for high net worth individuals. In instances where a higher coverage limit is necessary, high net worth insurance provides reassurance that valuable or unique assets are properly protected. Events such as theft, vandalism, natural disasters, and fires can severely damage high-value assets that may not be replaceable depending on rarity. High net worth insurance may come at a higher cost, but it protects valuable investments that need additional coverage.
Things to consider when choosing your high net worth coverage
High net worth coverage considerations will vary, but primary considerations will typically include the value of the assets insured, the kind of assets insured, and the risks associated with the asset type. Insurance cost and the value received are also crucial to evaluate. Insurance should be comprehensive but also affordable. When considering coverage, also consider the insurers’ particular experience with that coverage type and their reputation in the industry. Trucordia is a top 20 U.S. brokerage firm serving more than 420,000 clients.
FAQ
The threshold of a high-net worth individual will vary but will take into consideration their net worth and the value of their liquid assets. In most cases, high-net worth is considered around $1 million.
Yes, all properties, such as a primary residence, vacation homes, and investment properties can be included in one high-net-worth insurance policy. In fact, it is often recommended to bundle multiple properties under one plan.
There are a number of specialized high-net-worth insurance types, such as wine insurance, collectible insurance, and yacht insurance. Most high-net-worth assets will have an insurance plan that can protect their value from the unexpected.
High net worth insurance provides a higher coverage level also at typically a higher cost. It takes into consideration the concerns that surround higher-value assets
Umbrella coverage acts as an “umbrella” to cover a variety of high-value assets from potential risks. It’s less specific and more all-encompassing, which may allow you to bundle items at a potentially lower cost.
Understanding the value of your assets ensures that they are receiving proper coverage. For instance, if you have an asset worth $1 million but coverage is for less than $1 million, you will lose money in the event your asset is stolen or damaged.
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