High net worth individuals have a lot to protect, and in spite of having the resources to potentially pay for a claim out of pocket, the consequences could be financially damaging. These individuals may have to tap into investments, sell assets or take from a retirement account in order to offer settlement amounts, greatly changing their lifestyle or financial future. By carrying comprehensive insurance, these individuals can protect their assets and limit their liability exposure.
Find Weaknesses in Coverage
The complex nature of the high net worth lifestyle can be a problem with insurance coverage. Different homes across different states or countries, multiple automobiles, valuable collections and personal liability concerns aren’t a part of the average insurance solutions. Only insurers specializing in high net worth personal insurance understand the need for customized underwriting to address these risks. Key coverage areas should also include:
- Catastrophe coverage
- Artwork, jewelry, wine or other valued collections
- Domestic staff liabilities
- Excess liability or umbrella coverage
Ensure Limits Are Appropriate
The expenses of replacing valued possessions or repairing multi-million dollar homes require higher payout limits than standard insurance policies. Ensure that all of the assets have been correctly valued and coverage limits have been set high enough to address all risk concerns.
Not having enough insurance coverage presents problems similar to not having any insurance. Make sure that all exposures are fully addressed when looking for high net worth insurance coverage.