If you are a person who carries a high net worth but cannot find sufficient insurance coverage, High Net Worth Insurance Policies are tailor-made to suit your lifestyle’s needs.
High Net Worth Insurance policies were designed to specifically support and cater to individuals who find themselves with a high net worth income. These policies are crafted to protect affluent homes, luxury vehicles, extensive collection items, antiques, and other risks that may fall into a high net lifestyle.
However, High Net Worth Insurance policies aren’t just to insure the property. They can also cater to liability insurance for personal needs. Standard insurance policies do not usually have the proper capacity to protect high-end assets and risks.
The Benefits of High Net Worth Insurance
For someone who lives a high net worth lifestyle, the importance of high net worth insurance cannot be understated. This type of lifestyle usually includes expensive tastes, pricey collections, and other valuable purchases that carry a high point price tag. Standard insurance policies that fit the average person’s needs are unlikely to protect an invaluable wine collection or a priceless work of art.
At-Risk or Underinsured Possessions
It’s common for high net worth individuals, or HNWI, to find themselves and their possessions underinsured and at risk. In 2019, the number of high net worth individuals in the U.S. reached 5.32 million. Hobbies such as collecting vintage cars, yachts, or horses can be easy to overlook when shopping for insurance, and even once they are insured, is your coverage enough?
Without a market value evaluation of said assets, an HNWI may not even know how much coverage is enough. Quality high net worth insurance policies offer a safety net for high-ticket items and financially protect against theft, damage and other unfortunate losses.
A well-versed insurance agent has the capability of diligently taking count of all an HNWI’s irreplaceable possessions. Appraising these purchases and collections allows them to help the HNWI policyholder in finding an insurance solution.
The professionals at Meslee Insurance pride themselves on prioritizing what their policyholders need from their insurance provider. Meslee proudly sells insurance products that can be catered to their client’s specific needs. With an experienced team of specialists who have a vast knowledge of high-end valuables, Meslee Insurance is more than an ideal choice for any HNWI’s needs.
Employment Practices Liability Coverage
High net worth individuals will often have employed staff that works amongst their family, homes, and offices. These employees usually keep day to day life running smoothly but are also liability risks. Employee related risks, such as on the job injury and employment practices liability, are factors that an HNWI should consider when purchasing insurance for their household. Familiar HNWI employees are:
- Personal Assistant
- Captain or crew
Types of High Net Worth Insurance
Such is the case with many different insurance policies; High Net Worth Insurance also carries varying kinds. These high net worth insurance products can mold to fit the high net worth individual’s life needs.
Life Insurance & Estate Taxes
High net worth individuals tend to have higher living expenses than the average person and higher debt. However, because of their above-average income tax bracket, many HNWIs do not carry life insurance plans. They assume that their large estate would be more than enough to take care of their spouses and children.
The truth of the matter is, though, the loss can quickly drain even an abundant estate of steady income. Life insurance policies can help soften the blow of estate taxes and can help said estate remains reliable for remaining family members. If an estate surpasses the federal estate tax exemption line, having life insurance can come in handy for remaining family members.
Life insurance comes in many different shapes and sizes. Whole life, term life, and universal life insurance are all variations of insurance policies that ultimately serve the same purpose. The importance of life insurance is evident; the policy is there to help your family pay off lingering debts and provide for burial expenses.
However, with high net worth individuals, life insurance is often used to soothe the sting of estate taxes.
Personal Article Floater
A personal article floater is a separate policy, distinct from a homeowners policy, to protect valuable possessions. This is different than a rider within a homeowners’ insurance policy that adds extra coverage for specific options beyond what a typical homeowner policy might cover. A personal article floater can extend coverage to protect valuable possessions, instead of just the home. It can also provide security against potential losses, which are also typically left out of a homeowner’s insurance policy.
Kidnap and Ransom
K&R Insurance policies (kidnap and ransom) are typically purchased by high profile individuals, such as celebrities, professional athletes, musicians, and politicians. It is also purchased for high-net-worth individuals who travel internationally, who feel they run the risk of being held against their will for ransom based on their financial portfolio.
K&R policies can also cover spouses, children, nannies, or guests. Kidnap and Ransom insurance has become such a commodity in recent years that the U.S. State Department added an indicator for kidnap risk into their travel advisories, making K&R an important part of high net worth insurance.
High-Value Homeowners Insurance
Our homes tend to be our most valuable asset, and high net worth individuals are not exempt. The majority of U.S. states allow high-value homeowners insurance to contain allowances for expensive jewelry and other high-ticket valuables. HNWI, who owns multiple homes in various areas, should likely purchase individual homeowners’ policies for the separate properties due to state and local regulations. Not all companies can insure high value homes properly; only a few carriers have the limits and capacities to accept these types of risks.
Umbrella insurance policies are made to add additional liability coverages that may extend past the standard insurance policy. For example, if an HNWI’s guest were to get injured on their property, and their homeowner’s insurance policy didn’t cover that liability cost, Umbrella Insurance would pick up the slack. Further, if the homeowner’s insurance policy did cover the injury, the umbrella policy can help by providing higher overall limits of liability to pay for damages. High net worth individuals should also consider purchasing umbrella insurance in line with their equity to protect against personal liability and the need to liquefy assets to pay for damages to an injured party.
High net worth insurance policies are ideal for financially protecting the individual’s valuable assets and lifestyle. Loss, damages, and theft are something we all may face, but the price tag of that loss is far more substantial for a high net worth individual.
Meslee Insurance can offer quality high net worth insurance policies to fit their client’s needs. Request a quote here; our team would love to answer any questions you may have.