Managing the Risks of High-Net Worth Homes

Managing the Risks of High-Net Worth HomesWhen thinking about high-net worth homeowners insurance, it’s important that clients make sure they’re covering all of their bases. With 16.7 percent of families making more than $149,999 per year, according to the 2016 U.S. Census Bureau, there are many liabilities to consider, and a large potential client base for high-net worth insurers.

Mavon Insurance specializes in working with high net-worth individuals (HNWI), and we offer a range of insurance products for your clients with specified, hard-to-place risks.

Some Risks to Remember

The risks of high-net worth homeowners are varied and can range from things like insuring staff members like a nanny, a cook or a driver to needing insurance coverage on valuable items like fine art, boats, fancy cars or jewelry. Other common risk sources include the many additional amenities that often come along with a luxury home. Pools, hot tubs, balconies, and home gyms all have their own unique liability sources, and they should be taken into account when insured.

How to Successfully Cover an HNWI

The key things to ponder when insuring high-net worth homes are luxury items, excess liability, and underinsured coverage. If a home is large in size and has a lot of sought-after items, it is going to require heightened insurance. In addition to everyday liabilities, a big consideration is what would happen if something were to happen on the property and whether it would be covered by insurance (such as vandalism, a break-in, or weather-related property damage). Excess liability and underinsured coverage take care of that, and then some. Underinsured coverage will extend to if an HNWI gets injured on a different property, and excess liability covers an HNWI if they injure other people. Individuals can also extend the coverage of excess liability by increasing the limit, as well as increasing the limit for jewelry items.

Other Things to Consider

Annual risk assessments are a necessity with an HNWI, according to a 2017 Insurance Journal Magazine article. That means knowing how much they own and what it all costs. With 7.4 percent of families making more than $200,000 a year, knowing what their assets are is valuable. As wealth increases, so does risks, and it’s important to make sure that trainers, gardeners and contractors are all covered while working. There’s also options to get covered for risk management, sewage and drain protection, equipment breakdown coverage and more, and these can be tailored to fit specific risk exposures.

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.