Protection Strategies for High Net Worth Individuals
Ascend Executive
Burglar Stealing Items From Bedroom During House Break In
As a high net worth individual, you possess valuable assets that require exceptional protection and, whether it’s through insurance or advanced security measures, ensuring your possessions are safe from loss, theft or damage is crucial.
In this blog, we’ll explore various strategies to safeguard your most treasured items, from luxury jewellery to property, and how the right insurance can provide that extra special layer of protection.
Jewellery
Storage
Jewellery needs special consideration when it comes to storage, as each piece is unique and precious. Storing jewellery in a safe at home is essential, but not just any safe will do; opt for a high-quality, fireproof safe that is securely bolted to the floor or wall, ideally hidden from plain sight. The safe should have a reliable lock, preferably a biometric or digital keypad, and jewellery should be stored in individual, soft-lined compartments or pouches to prevent scratches and tangling.
Avoid keeping all your jewelleryin one place. Consider dispersing some items to different secure locations within your home. And regularly update your home security system, including alarms, motion sensors and surveillance cameras, to deter potential burglars.
Insurance
Insuring jewellery requires a few careful steps to ensure comprehensive coverage and peace of mind. Start by getting a professional appraisal to accurately determine the value of each piece and keep appraisals regular to account for changes in market value and inflation. It’s also a prudent idea to keep detailed records, including photos and descriptions of each item, and store these along with the appraisal documents in a secure location.
Your insurance policy must cover loss, theft and damage, for both home and travel incidents, and you might want to consider a a specialist jewellery insurer for tailored coverage options. Make sure to read the fine print to understand any exclusions or limitations of the policy.
Handbags
Protection
Are you aware of the effect of inflation on the value of your designer handbags and their increased values on the secondary market? Have you considered how safe your handbags are from theft?
Luxury handbags are lightweight and easily accessible, making them prime targets for theft. Insurers note that, too often, clients’ handbags are stored on open shelves or left on chairs or counters, increasing their vulnerability, and that thieves use them during a burglary to transport smaller items like jewellery.
Handbags should ideally be kept discreetly out of sight, preferably in locked cabinets or safes.
Insurance
Updated valuations are very important when it comes to handbags, to reflect their true market value in consideration of factors like inflation and demand in the secondary market.
Do make sure your insurance policy includes coverage for handbags, accounting for their potential increase in value over time. It’s a fantastic idea to keep a record of authenticity for each handbag, plus detailed photographs and descriptions, should you need to make a claim.
Art collections
Protection
Art collections are susceptible to inflation and frequent market fluctuations. They can be more fully protected by receiving regular appraisals to reflect current market values, with each piece assessed in detail. For physical protection, use alarms, surveillance cameras and secure display cases. Security systems linked to mobile apps for real-time monitoring provide the most reassurance. Environmental controls, such as climate and humidity regulation, are also crucial to prevent damage to delicate pieces.
Insurance
Valuable art collections need watertight insurance coverage. When it comes to insuring art collections, standard homeowners insurance often falls short, making it necessary to seek specialised coverage. Fine art insurance policies are designed to address the unique risks associated with valuable collections, offering coverage for theft, damage, loss and even restoration costs. These policies typically provide “all-risk” coverage, meaning they protect against a wide range of perils unless specifically excluded.
Working with an insurer experienced in fine art allows collectors to receive tailored advice and coverage options that best suit their needs. It’s also important to periodically review and adjust the insurance policy to reflect any changes in the collection’s value or composition. Additionally, maintaining detailed records of each item, including photographs, provenance and appraisals, is essential for both security and insurance purposes, ensuring the collection’s value is accurately reflected over time.
Cars
Protection
Whether it’s a classic car or a modern luxury vehicle, ensuring its protection is paramount. Advanced security systems available to you include GPS tracking, immobilisers and key fob protections, to deter theft and ensure rapid recovery if stolen. Car thieves these days don’t need your key, they simply require a signal from your key fob, so invest in a Faraday cage or pouch, which block electromagnetic fields.
Avoid leaving your key fob near doors, windows or walls, as thieves often use relay devices to capture the signal from outside your home. Store vehicles in secure, climate-controlled garages to prevent theft and damage.
Insurance
Insuring high net worth cars involves obtaining specialised coverage that goes beyond standard auto insurance policies. These vehicles often require agreed value coverage, which guarantees a predetermined payout in the event of a total loss, reflecting the car’s true market value. Policies should also include comprehensive coverage for a wide range of risks, such as theft, vandalism, natural disasters and accidents, and encompass coverage for unique parts and potential restoration costs. Working with insurers who specialise in high-value vehicles ensures access to tailored coverage options and expert advice on risk management.
Regularly reviewing and updating the insurance policy to account for changes in the car’s value, usage or modifications ensures that the coverage remains adequate and effective, providing peace of mind.
Property
Valuations
Your property needs to be accurately valued. And not just the bricks and mortar, or simply your contents, but any part of your home customised with bespoke detailing or craftmanship. If you had expert craftsman in to undertake a floor, a stained glass window, or a unique bespoke kitchen, for example, are you suitably covered to cover the expert cost of replacing it? Do your premiums reflect what you’d really need to claim for?
Great advice would be to involve your insurance assessor during the building or renovation stages to ensure comprehensive coverage. He can make a detailed assessment of exactly what is going into the project, however artisan and intricate, so your premiums are right, should you have to make a claim.
Protection
Something you might consider for your property is a leak detection systems that alerts you to any problem via an app, allowing for quick intervention and preventing catastrophic damage. No one wants a leak that’s been going on for days/weeks risking their home and contents, if it can be discovered immediately.
Insurance
The right insurance for high net worth properties should include comprehensive coverage options tailored to address their distinct risks, including higher liability limits, coverage for rare and expensive items, and provisions for rebuilding costs that reflect the true replacement value of the property. Additionally, working with insurers who specialise in high net worth clients ensures personalised service and risk management strategies that cater to the unique lifestyle and needs of affluent homeowners.
Safes and security systems
The safe you choose plays a critical role in protecting your valuables. High net worth individuals should consider high quality safes with advanced security features and high resistance ratings. Security integration could also be invaluable: link your safe to a professional security system monitored by a reputable company and add an extra layer of protection when your property is unattended.
A note on making claims
Currently, the process of making insurance claims can be taking longer due to various factors, including supply chain disruption due to issues caused by geopolitical conflicts, such as wars, as well as the effects of Brexit, plus the aftermath of the pandemic.
These disruptions can extend the time required for repairs and replacements, leading to prolonged alternative accommodation periods and a domino effect on increased costs in premiums. Make sure your insurance covers you for extended stays in alternative accommodation.
For high net worth individuals, safeguarding your treasured possessions requires a combination of meticulous planning, regular valuations and advanced security measures. Plus, of course, those all-important insurance policies! By working closely with your insurance broker and investing in high-quality protection solutions, you can ensure your valuables are well-protected against potential risks like loss, damage or theft.
Let AscendExecutive act as your high net worth protector! We can assess and value all of your collections and find the right watertight and completely bespoke insurance policy for you. Contact us on 01245 449060 or email Amy.English@ascendbroking.co.uk.
