What is High Net Worth Home Insurance?
High net worth home insurance is a term that is applied to a specialist form of home insurance policy that is designed for persons who are considered to be wealthy. As a consequence of being wealthy, this group of persons is likely to have higher sums insured in respect of personal possessions and contents and have a lifestyle that requires additional covers, not usually found under your standard home insurance policy. Understanding the lifestyles of affluent people has enabled a number of insurance companies to design insurance policies that will meet their needs. In recent years, a number of mid net worth policies have also appeared on the market aimed at people who fall into the category,’ emerging high net worth’, this type of policy is usually aimed at young career professionals but the general principals of cover remain the same although some of the limits may be slightly less.
What is included in a High Net Worth Insurance Policy?
There are a number of product providers for high net worth home insurance but one thing they all have in common is that the policy wording will be wider than that normally available under a standard home insurance policy. The policy documents provided have a glossy quality feel to them and the level of service provided in terms of claims handling and dealing with queries will be superior. Often a dedicated contact number is provided to provide information about services and to manage any claims. In short, high net worth individuals are supposed to be more demanding and this type of contract seek to meet those needs and also supply a wider range of covers with additional benefits.
Policy wordings are usually written on a “Worldwide All Risks” basis with wider limits for almost all sections. Whilst “All Risks” wordings do not literally mean that every eventually will be covered, it does afford a wider degree of protection. This basis of the cover was designed to meet the needs of people who have a ‘lifestyle”, who are seen as frequent travellers and often do not have the time to telephone their insurance broker or company every time they want cover extended to go abroad. High net worth individuals often have a larger amount of jewellery and personal possessions and many of these items will be taken with them on trips abroad. If you include buildings insurance cover, this will be extended to include accidental damage cover automatically.
As well as this widening of the territorial limits under the policy, it is normal to see the sums insured on most other sections increased as well. Often, under the building's section, it is usual to see extra alternative accommodation cover included, with the time period extended to up to five years. Limits for loss of metered water and liability are also increased, and most sections will have generous allowances for cover.
How are Items insured under High Net Worth Home Insurance?
Under the contents section of the policy, limits for high valued items will be higher, often there is no need to provide valuations, but the insurer may ask you to separate your sums insured into various sections.F for example between;
- General Contents
- Mechanical Art and Objets d’Art,
- Outdoor items
- Gold, Silver, Platinum, Pewter and Plate
- Precious Stones
- Stamp and Coin Collections
- Other collectibles; such as Models, Dolls, Guns and other sections depending on the high net worth insurers particular requirements.
Most high net worth insurers will apply a more complex rating structure than that employed under a standard policy, often it is possible to secure a lower cost for Antiques Insurance and Fine Art Insurance so the exercise of dividing sum insured is well worthwhile, if a little time-consuming. When it comes to insuring jewellery and personal possessions often the insurer will set a much higher level for individual items, of course specifying items may still secure you a discount.
What Excess can I expect on High Net Worth Home Insurance?
Excess requirements under this type of insurance are generally higher than you would expect to find under a standard home insurance policy, £250.00 is fairly typical, but the insurer will usually consider an excess up to £1000 without to much bother. When it comes to securing your hi net worth home, you may find that the insurance company have certain requirements because of the value of the possessions owned. Good physical securities such as door and window locks may be requested as well as an approved safe,( depending on the value of jewellery that needs covering) In some cases, an alarm will need to be fitted and the specification submitted to the insurer for approval.
Where high net worth home insurance policies really score is in their additional “peripheral” covers, most will include Legal Expenses as a matter of course covering such things as employment disputes, contract disputes, property & tax protection and legal defence cover, many will also now include free annual travel insurance for the whole family. Certain’ personal covers” also available to protect the policyholder against libel & slander and even stalking and road rage. One “extra” which is certainly worthwhile is cover in respect of identity fraud.
High net worth home insurance is underwritten on an individual basis and it is rare to find a calculator online. By dealing with a broker directly, you can expect a discreet service each case will be considered on its merits and factors such as location, occupation, and dates of birth will in be used to calculate a premium without you having to disclose this information online. Online insurance websites tend not to be able to accommodate high net worth individuals as the sums insured required are often above the thresholds many insurers are prepared to offer.
In many cases, the insurer will want to survey the premises (at their expense) and a report with recommendations sent the policyholders. Most will have facilities with auction houses and valuers and often a discount on valuations can be obtained. At Assetsure, we welcome your enquiry for high net worth home insurance.
How can Assetsure help me?
We are able to provide quotes for high net worth home insurance, so be sure to contact our team on 0208 0033 180 where we will be happy to assist you in creating a personalised quote.