If you have at least $1 million in financial assets that are easy to liquify or use, you are considered to have a high net worth. Real estate, expensive works of art, and commercial holdings do not fall into this category. Liquid financial assets include stocks, bonds, and cash that can be sold or withdrawn easily. Having these types of assets will require a committed insurance agency. Read on to understand the basic features of high net worth insurance.
What Is High Net Worth Insurance and Who Needs It?
Anyone who holds excessive liquid assets needs high net worth insurance. This type of insurance includes many different types of policies that will cover various types of unique risks. Wealthy clients have specialized needs that require customized insurance policies designed to cover excessive amounts of liability, collectibles, and other expensive items. While many have investments of over $1 million, they may also have liquid assets of that amount or more.
Types of High Net Worth Insurance Coverage Available
When working with high net worth clients, all types of risks must be taken into consideration. Assessments must be made for cyber security, business, lifestyle, and any other type of activity that would increase their risks.
- Home and Contents Coverage – A high net worth homeowner policy will be handled just like a traditional or standard policy, except that it will also take into account the higher cost involved. Most of these policies also include a guaranteed replacement cost when it comes to replacing the home, landscaping, pets, and possessions. They may also have an option to settle for cash.
- Valuable Articles – Valuable articles can include anything that has a significant appraisal value. This usually involves antiques, wine, art, collectibles, precious jewelry, and one-of-a-kind items. Flood insurance may fall into this category.
- Kidnap and Ransom Coverage – Kidnap and ransom coverage is needed for clients who may be a chosen target for kidnapping, blackmail, extortion, or any type of ransom demands. This will cover lost wages or salary amounts that were lost due to this type of event. It also covers death or dismemberment.
- Family Protection – Family protection will cover high net worth individuals for a variety of traumas (emotional, physical, and psychological) resulting from different types of crime. This includes cyberbullying, carjacking, child abduction, and road rage.
- Family Office Protection – Family office protection covers any home offices or equipment used to operate a commercial enterprise within their residences.
- Personal Liability – Personal liability protection will protect you against liability claims for property damage or bodily injury, in some cases both. Exclusions to personal liability include automobile accident-related injuries, intentional acts by family members resulting in bodily or property damage, damages or injuries faced by family members while at home, etc.
- Excess Liability – Excess liability is another word for umbrella insurance and offers similar forms of protection for high net worth individuals. The coverage kicks in when the limits of other coverage forms are exhausted.
High Net Worth Insurance Costs and Factors That Affect Price
The many types of risk that can be involved in insuring high net worth items are the biggest factors that affect the price. The amount of liability is also increased exponentially in some cases.
The Best High Net Worth Insurance Programs Available
If you are interested in learning more about high net worth insurance, contact our professionals committed to assisting their higher-end clients. Call our team of insurance experts at GrayStone Insurance Group. They have the knowledge and experience to ensure that you are fully protected.
