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Most of us think we know what high net worth is, or rather who a high-net-worth individual is: a billionaire with a collection of fancy cars, right?
Well, yes, a billionaire with a collection of fancy cars would certainly be a high net worth individual, but there are many others who would fit the definition, across a fairly wide spectrum, and more of us are high net worth or hold high net worth assets than you might think.
For example, if you own a house worth more than £500,000, if you have built up a jewellery collection, or even own a single expensive piece, like an heirloom watch, you would be considered high net worth and would need the bespoke service that comes from high net worth – not standard – insurance. High net worth insurance can’t be simply bought off the shelf, or online, and needs an expert intermediary to make sure the right policies are sourced for you.
Here’s our simple guide to what constitutes high net worth and what a high net worth individual might need to protect:
Property
Maybe you have just bought your dream home. Perhaps your property is worth more than £500,000. A high value home requires more than standard home insurance in order to protect it and requires the greater care and attention of high net worth homeowners’ insurance – and a qualified broker to approach this market on your behalf.
This kind of policy covers not only the cost of rebuilding your property, but also its high-end features like architectural design, rare materials and landscaping. High net worth homeowners insurance often includes coverage for multiple properties, including holiday homes or second residences, and alternative accommodation – if your home is damaged by fire or flood, for example.
Property contents
The contents of your home are considered high net worth if they value in total £100,000 or more. This can include anything from rugs and soft furnishings to furniture, electronics and appliances, art (see ‘Collections’, below), clothing, books and garden hardware.
Again, a standard home and contents policy will not adequately cover you and a high net worth policy is applicable. A broker can inventory and assess all of your possessions and find the right high net worth contents insurance for you, often including worldwide coverage, which offers additional protection against loss, damage or theft for items away from home – whilst you are travelling with them, or if your items are in storage.
Collections
People often like to invest in collecting beautiful and valuable things: paintings, sculptures, and other artworks; antique furniture and collectibles; jewellery, art, handbags and wine. Prestigious collections like these far exceed what would be covered in an ordinary contents policy and, indeed, are at risk of being underinsured.
If you own a collection of any of the above, you need an experienced high net worth broker to help you assess the combined value of your pieces and provide you with the right insurance cover. High net worth insurance provides separate, specialised coverage for all of your valuable possessions, covering loss, theft, or damage.
Cars
You may have a fleet of super cars, a collection of classic vehicles, or a single classic car of over £60,000 in value that needs to be insured at the right value and not according to depreciation. For any of the above you need high net worth attention!
Luxury or classic cars of high worth need that intermediary, or broker, to help you implement a specialised insurance policy. High net worth car insurance offers higher coverage limits, ‘agreed value’ coverage (so you are paid the full value of the car in case of a total loss), multi-vehicle policies, a courtesy car to a similar specification of the vehicle lost or being repaired, and even concierge services for repairs or claims.
Personal risk and security
Kidnap threats are not such a wild possibility for high net worth families or individuals whose wealth and assets may make them a target, and insurance for this threat can be a wise necessity. High net worth kidnap and ransom insurance is there to protect you against such threats and to provide appropriate specialist support services.
A broker can also help you source personal liability insurance. This protects against lawsuits that could arise from accidents, injuries or damages that occur on an individual’s property or as a result of their actions. For high net worth individuals, the stakes are higher for this, as their wealth can make them a target for lawsuits. Umbrella Insurance, which provides extra liability coverage, exceeding more standard liability policies, is often a key component of a high net worth insurance package when it comes a heightened risk of personal liability.
Cybersecurity
Unfortunately, with greater wealth comes greater exposure to cyber risks. High net worth individuals are often targets for cybercrimes like hacking, identity theft or financial fraud, and Cybersecurity Insurance would help to cover the costs associated with these incidents, including legal fees, data restoration and crisis management. More and more, this kind of insurance is becoming a valid and necessary consideration for any high net worth individual.
High net worth encapsulates any type of lifestyle, wealth or collection of assets where higher values are involved and cut and paste standard insurance policies just won’t cut it. The high net worth individual requires more care and attention when it comes to their insurance requirements: bespoke policies sourced by an experienced broker that adequately reflect the value of their lives, what they own, and what they have built up.
High net worth requires discretion and personal service. It means tailored, specific, family and lifestyle protection, and more of us are high net worth individuals than might be imagined.
Ascend Executive understands the intricacies of high net worth and we are here to help. Call us today to discuss your bespoke needs, or your questions on high net worth insurance, on 01245 449060 or email info@ascendbroking.co.uk.
