Standard insurance policies will meet the needs of most customers, but a high net worth policy benefits customers who have particularly valuable assets, such as an expensive home, fine art, high-end jewellery, motor vehicles and more.
High Net Worth Insurance
Standard policies may not encompass customers’ full range of assets, providing an insufficient sum insured or one that cannot account for the sheer volume of valuables.
Because they cover such a wide variety of valuables, high net worth policies are often composed of several different covers which, together, constitute a single policy. The following sections describe some popular covers available as part of a high net worth policy.
Buildings Cover
Your home is one of the largest and most expensive purchases you will ever make.
As part of a high net worth policy, ‘buildings’ is likely defined as the main dwelling, outbuildings, garages, swimming pools, tennis courts and other features on the property. High net worth policies typically extend cover beyond the limits of a standard policy to include buildings and features ancillary to the main house.
Due to its expansive nature, insurers usually offer buildings cover, and most other high net worth covers, on an ‘all-risks’ basis rather than a hazard-specific basis. But offering ‘all-risks’ covers does not stop insurers from issuing cover exclusions, for instance, they sometimes exclude damage caused by domestic animals. Always read your policy wording to know what you are covered for.
Contents Cover
Contents are generally defined as the personal property which you own. This can include furniture, furnishings, household goods and personal effects.
Most high net worth policies provide contents cover on a ‘worldwide’ basis, meaning it covers belongings wherever they are in the world for the entire period of insurance. Worldwide cover is especially attractive to people with multiple homes or those who travel extensively. Rather than arranging separate policies for the personal property spread across several countries, customers can purchase a single, comprehensive worldwide contents policy that protects their belongings.
Extensions to contents cover can include alternative accommodation, home office equipment and guests’ effects. Exclusions can include loss caused by government confiscation, repairs, and pets. The list of extensions and exclusions to contents cover can be long, so pick a policy that insures the full spectrum of your contents.
Valuables Cover
Depending on your policy, your valuables, such as gold, jewellery, and furs, may be covered under your contents cover. Insurers also offer separate valuables cover if customers have a specific list of valuables they would like to protect, such as fine art, antiques, and collectibles.
Extensions include cover for newly acquired valuables, pairs and sets, and an increase in sum insured due to the death of an artist. Exclusions can include dented or faded stamps and coins, losses during transit and damage caused by alterations.
Liabilities Cover
As the owner of a house or employer of domestic staff, you unavoidably expose yourself to legal liability. Liabilities cover protects against liability claims related to your property or household employees. For example, are there public rights of way across your land, or do you hold public events on your premises? Inviting or allowing members of the public on your property greatly increases your legal liability.
Insurers may also include legal expenses cover within the liabilities cover. Legal expenses cover defrays the cost of pursuing claims against another party, arising from, for example, an accident that causes death or injury to the insured or a dispute over a contract.
Travel Cover
Most high net worth policies offer annual travel insurance that covers cancellation charges, medical expenses while abroad, and costs due to delayed departure and missing luggage. Exclusions include travelling against medical advice, certain age restrictions, and death, illness or injury stemming from specified dangerous activities.
Additional Covers
- Small craft
- Caravans
- Second homes
- Family protection
Use a Broker
Protect the things you have worked so hard to obtain. One disaster can cause a ripple effect, divesting you of the products of your hard work, but by using an insurance broker, you can use their knowledge and expertise to ensure that your requirements are covered, and you can rest easy knowing that you have insured a lasting legacy.
