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High Net Worth Insurance

Standard Home Insurance VS High Value Home Insurance

by jessicapcrg May 10, 2022

Standard home insurance is meant to protect average priced homes with basic to semi-custom finishes. Custom or luxury homes have most likely outgrown a standard home insurance policy. That is where high value home insurance comes in… A high value home policy provide more coverage with unique benefits specific to luxury homes that a standard home policy is not designed to do.

Are you putting your biggest asset at risk by insuring it in the wrong caliber of insurance policy? 

 

What are the major differences between a standard home policy and a high value home policy?

  • Guaranteed Replacement Cost: Guaranteed replacement cost gives you an unlimited rebuild amount in the event of a total or large loss. Example: If your home rebuild coverage lists $1.2 million on your policy documents and you have to rebuild and it ends up costing $1.8 million. The insurance company will pay the $1.8 million regardless, of the rebuild coverage listed on your policy documents. A standard market insurance policy will discontinue coverage once the policy limit is exhausted.
  • Cash Out Option: A high value home policy gives the insured the option to take a cash settlement instead of rebuilding their home. A standard home policy will require the home is rebuilt or damage is repaired with no cash out option.
  • Deductible Waiver: High value home policies tend to carry higher deductibles (Such as $10K). In the event of a large claim (typically $50K or more) the insurance company will waive the $10K deducitble on your policy. A standard home policy does not provide the option to waive your deducitble regardless of the size of the claim.

  • Equipment Breakdown: Luxury homes typically have luxury appliances and equipment. High value home policies come with equipment breakdown coverage to protect the breakdown or malfunction of those luxury appliances. Example: If you have a subzero commercial grade refrigerator that stops working and you need to replace it. It can cost $18K to purchase a new refrigerator and another $3K for installation. Your high value insurance policy would pay the full cost to replace that refrigerator and installation costs. Bonus*** it also only carriers a $500 deductible!  A standard home insurance policy does not naturally come with this coverage. It sometimes can  be added to your policy at an additional premium.
  • Customized Coverage Limits: A high value home policy gives you the option to customize your coverage limits to best insure your unique custom home. Have you made a large investment in your landscaping? You can increase that coverage! Most standard home insurance policies come with package limits with restrictions on what you can adjust.
  • Increased Special Personal Property Limits: A standard home policy typically has reduced limits for specific personal property items. A high value home policy increases these limits or reduces the limitiation all together.

Jewelry: $2,500 Standard Policy Limit vs. $25,000 High Value Limit

Firearms: $1,500 Standard Policy Limit vs. No Limit on High Value

  • Loss Prevention and Risk Analysis: High value home insurance companies will provide you loss prevention services such as: preventative wildfire spraying, water detection and leak protection devices, or personal property inventory resources.

 

These are only the major differences between a standard home policy and a high value home policy. There are several other differences and benefits not outlined.

If you would like to discuss if your home should be insured as a high value home please request a review at Request a New Insurance Policy Quote

 

What Is High Net Worth Insurance And Who Needs It?

by jessicapcrg May 2, 2022

As an agency that specializes in the High Net Worth/ Affluent insurance market we get asked everyday “What is High Net Worth Insurance?”, “How do you qualify for High Net Worth Insurance?”, and “What Makes High Net Worth Insurance Different?” In this article we will answer these commonly asked questions about high net worth insurance.

What is High Net Worth Insurance? 

High Net Worth Insurance is designed for families and individuals that have more to protect in value and/or quantity. There are insurance companies that only insure in the high-end market and those insurance policies are built and designed to support high value assets and clients. Those insurance companies have the ability to insure higher value homes, larger liability umbrella limits, and unique or expansive collections (jewelry, wine, artwork, etc). The standard insurance market typically does not have the capacity, appetite, or ability to insure.

How do you qualify for High Net Worth? 

If you are feeling you have outgrown your current insurance company it is probably time for you to explore switching to a high net worth insurance program. However, there are some clear indicators that are looked at for qualifying for the high net worth insurance market:

  • Home rebuild value above $750,000 replacement cost
  • High value vehicles
  • A large liability umbrella need (typically over $3 million)
  • A complex insurance portfolio with a lot of insurable assets
  • High value items/collections such as jewelry, fine arts, antiques, sports equipment, etc
  • High income earning individuals or those that may have just received a new influx of funds

*** You do not need to meet all of this criteria to qualify. These are just key indicating factors that we look at if the high net worth insurance market is a good fit for you.

What Makes High Net Worth Insurance Different?

The high net worth insurance market is different in policy contracts, capabilities, member benefits, and claim support.

Policy contracts: The insurance policy contracts are robust and often times package many of the coverage’s you need. A standard market insurance policy typically comes with ala carte style coverage’s and endorsements that we have to pick and pull to build a policy. The high net worth contract understands the unique risks of a high value policy and includes a lot of those coverage’s on your policy. Example: Guaranteed replacement cost on home policies. Meaning you have an unlimited rebuild value for our home regardless of insured amount listed. 

Capabilities: Simply put, high net worth insurance companies have the ability to insure higher value assets and individuals that the standard insurance market cannot or should not.

Member Benefits: Most high net worth insurance companies offer member benefits such as travel/medical evacuation programs or collection inventory support. These member benefits come at no additional cost to you.

Claim Support: High net worth insurance companies offer white glove claim service and support. They employ adjusters that understand how to determine valuations on high end assets.

Who are those insurance companies? 

  • CHUBB
  • Nationwide Private Client
  • AIG
  • PURE
  • Cinncinnati
  • Openly

If you think it is time for you to explore transitioning to the high net worth insurance market our team would love to take you through our risk anaysis process. During that process we help you determine which insurance company is the right fit for you and your family and if the high net worth market is a good solution for your needs.

Headquarters: Bellevue WA

10900 NE 8th Street #1550
Bellevue, WA 98004
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(425) 243-5193
info@pcrginsurance.com

Salt Lake City, UT

2651 W South Jordan Parkway #101
South Jordan, UT 84095
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(425) 243-5193
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Seattle, WA

1601 Fifth Avenue Suite 2000
Seattle, WA 98101
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Lake Oswego, OR

5335 Meadows Road Suite 350
Lake Oswego, OR 97035
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(425) 243-5193
info@pcrginsurance.com

Rocklin, CA

3845 Atherton Rd #5
Rocklin, CA 95765
Get directions
(425) 243-5193
info@pcrginsurance.com

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