What is High-Net-Worth Insurance for Homeowners?
There are over 5 million high-net-worth individuals and families in the United States; specialty insurers have taken notice and made specialized products policies available to extend coverage for these potential customers. These insurers match their clients with policies and extra coverages that address their unique risks and needs. High-net-worth insurance fills the gaps left by standard policies to provide customized protection.
Home Insurance for High-Value and Luxury Homes
Your home is most likely the single largest purchase that you as an individual will make; this is true even for households with high net worths. However, as home values rise, the basic coverages provided by standard policies won’t be enough to cover the risks. This leaves gaps that can jeopardize your home, assets, investments, savings, and even future earnings. Specialized high-net-worth insurance policies have higher coverages that are designed to protect high-value homes as well as the belongings inside them. Proper protection for your possessions, including valuable jewelry, fine art, and home decor, is critical. These policies also include specialized options that you won’t find in a standard insurance policy, such as guaranteed replacement cost coverage for your property or the choice between rebuilding or taking a cash settlement in the event of a loss.
Higher net worth can come with increased risk of liability; the standard liability coverage that comes with most home insurance plans won’t be enough to accommodate the increased risk and considerations of a high-net-worth individual. Customized umbrella policies are excellent options; they can increase personal liability limits for both your home and auto policies as well as adding some new protections that include libel, slander, and other considerations.
Coverage for Household Employees
Households with high net worths tend to have household employees such as nannies, gardeners, and others. In many cases, these individuals can feel like part of the family; however, their presence can create additional risks. A high-net-worth homeowner’s insurance policy builds in protection for risks relating to household employees.
In today’s digital age, cyber liability is becoming more and more common. Most luxury homes have a network of devices that control cameras, lighting, temperature, audio-visual systems, and more. While these devices are incredibly convenient, they can create openings for hackers. Hackers love to target financially successful individuals and families by exposing their privacy for ransom. Some specialty insurance companies offer cyber liability coverage that can cover you in these events; these plans vary from company to company, so you’ll want to review your coverage carefully.
If you are involved in business pursuits that involve giving advice, or if you hold a board position, a standard homeowner’s insurance policy won’t protect you against liability that arises from business-related activity. A customized high-net-worth insurance policy can include coverage that guards against these liabilities.
Standard home insurance policies provide protection against some weather-related damages, but they don’t usually cover things like storm surge or flooding. Customized coverage for high-net-worth homeowners can build in protection against floods and other natural disasters, protecting your large investment in every way possible.
Contact an Insurance Professional
If you own a high-value home, it’s important to get it properly protected. Reach out to an insurance agency that specializes in high-net-worth policies to make sure that your home is covered. A qualified and reputable professional will work with you to build a policy that addresses your unique needs and guards against any danger, granting you peace of mind no matter what happens.
For more information reach out to Daigle & Travers Insurance. We have two convenient locations in Connecticut: Darien and Westport. One of our many experienced insurance professionals will be able to guide you through the insurance process. We can be reached at 203-655-6974 or at firstname.lastname@example.org.