Assessing Coverage for High Net-Worth Individuals

High Net-Worth Insurance > Having the Right Coverage

High Net-Worth Individuals: Assessing CoverageAs we discussed in a previous article, high net-worth individuals require some additional insurance considerations. Luxury items, a full staff, and increased liabilities are a few reasons for these individuals to evaluate their High-Value Home Insurance policies. Simply put, as wealth increases, so do exposures and risks. Therefore, share the following information with these clients to ensure their portfolio is comprehensive.

Excess liability.

In addition to high-value home insurance, excess liability can provide additional limits if these individuals are found negligent or at fault for any injury that occurs on their property.

This coverage provides personal liability limits well beyond the dollar amount provided by a typical home and auto insurance policy. When the primary insurance limit is exhausted, an umbrella policy affords additional coverage, including coverage not found in your primary policy in many instances. An umbrella policy generally covers you and family members residing in the household if found negligent for accidental injuries to another person or their property, explains Lovitt-Touche.

Underinsured coverage.

As a high net-worth individual (HNWI), it’s more likely that they require more funds to replace their damaged items or property than a traditional home insurance policy would provide. This coverage will bridge the gap between the additional funds needed after the other insured’s policy has reached its limit. This policy also extends to injuries suffered by HNWI on their property when another party is responsible, or if the HNWI becomes injured at someone else’s house.

Luxury items.

In addition to home and property insurance, luxury coverage can protect large-ticket items such as boats, recreational vehicles, jewelry, fine art, and more. The more luxurious items that are acquired, the more coverage should be carried.

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