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.