What are my insurance needs as a person with a high net worth?
A study conducted in 2010 by the ACE Group found that many high net worth families were actually overpaying to be underinsured. They concluded that if the clients “had looked for an agent and carrier better suited to their current level of achievement and lifestyle, the probably wouldn’t have paid much more for better protection. In many cases, they could have paid less.”
Why would I need a High net worth option for my insurance?
If you own a home of high value or if you have a high net worth, you have needs that could be more unique than some other people. At William Blount & Associates, we work with specialty carriers to provide you with a tailor-made policy for your needs, at the most competitive price. You might be wondering what are the differences that you may have versus what’s available in a standard insurance policy, there are three main differences between the needs of an average person and the needs of someone with a high net worth.
First, your home could need more specialty attention. Every home is a significant investment, but your home could have more specialty characteristics or custom features that would make it even more important to have the right coverage. A high value home insurance policy and policy limits that are typically higher, more broad, and beyond the standard policy.
Second, your liability exposure is typically much more expansive. Purely having wealth makes you more of a target for a lawsuit. Adding in boats, motorcycles, other recreational vehicles, hosting gatherings at your home, being a business owner or executive at a company, or participating as a board member increases the likelihood of a lawsuit. Umbrella policies start at $1 million in liability coverage, but can go up to as much as $100 million in coverage. Each asset represents a different exposure, but the key is to look at your family and assets as a whole to scope out potential risks. The most common reasons a high net worth client would be sued are:
| Auto Accidents
|| Boat Accidents
Lastly, you could have valuable items that need additional consideration. Such as, you’re given more access to insuring high value vehicles, collector vehicles, exotic or antique vehicles, etc. on the same policy as your daily driving vehicles. There are additional coverages available like increased jewelry limits, artwork or collections, guns, or furs. In addition, these coverages are typically extended to cover you if you travel internationally! Lastly, you could be provided with some coverages that may not be available on a standard policy; such as inclusion of personal injury protection, kidnap or ransom, electronic data restoration, identity fraud protection, landscaping coverage, guaranteed replacement cost, or even a cash out settlement option rather than being required to rebuild, etc.
At William Blount & Associates, we believe that getting to know you and developing a relationship is vital to insuring you properly. Please contact our agents at 865-588-7000 or Request a Risk Evaluation to schedule an appointment.
ACE Group Study: Wealth at Risk: How High Net Worth Families Overpay to Be Underinsured http://www.acegroup.com/us-en/assets/ace_overpaying-to-be-underinsured-white-paper_mar-2013.pdf