What is it and who needs it?
A high net worth home insurance policy benefits homeowners who have particularly valuable assets, such as, an expensive home (buildings worth more than approximately £1m and contents worth more than approximately £100k), perhaps also a collection of fine art, jewellery, collections, antiques, yachts, holiday homes, motor vehicles and more.
A high net worth home insurance policy offers specific covers tailored to meet these needs and the following sections describe some popular covers available as part of a high net worth policy.
To review your home insurance needs to ensure that you are adequately protected and to discuss your overall insurance requirements, contact the expert team at RS Risk Solutions: info@rsrisk.solutions or 01342 580106
Buildings Cover
As part of a high net worth policy, ‘buildings’ is usually defined as the main dwelling, outbuildings, garages, swimming pools, tennis courts, landscaped gardens, outside ornaments, amongst others. 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 specific peril basis, i.e., fire, theft, etc.
Contents Cover
Most high net worth policies provide home contents cover on a ‘worldwide’ basis, meaning the policy covers belongings wherever they are in the world for the entire period of insurance. Worldwide cover is attractive to people with multiple homes or those who travel extensively because it avoids the need to arrange separate policies for the personal property spread across several countries; instead, people can purchase a single, comprehensive worldwide contents policy that protects their belongings, no matter where they are.
Many high net worth policies offer a myriad of useful additional covers, such as, sports equipment, cyber insurance, home emergency cover, home office equipment and employees’ and guests’ effects.
Valuables Cover – Jewellery, Works of Art, Antiques and Collections
Depending on your policy, your valuables and works of art items such as gold, jewellery, watches paintings, sculptures and furs may be covered under your contents cover up to a certain unspecified limit. Insurers also offer separate valuables cover if customers have a specified list of high value items they would like to protect, such as, fine art, antiques and collectibles. Extensions may 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, temporary removal for cleaning and damage caused by alterations and agreed value basis of settlement.
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.
Insurers may fold legal expenses cover into 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. The travel section can usually be extended for winter sports and family members.
Additional Covers
There are many more additional covers available as part of high net worth policies, such as:
- Motor
- Small craft
- Caravans
- Second homes
- Family protection
Risk Management
High net worth homeowners need to consider their risk management options, particularly in relation to fire, theft and escape of water. In addition to centrally monitored alarm systems (both theft and fire), safes and good quality window and door locks, there are a wide variety of additional security options available today, such as, CCTV, infrared movement detectors, leak detectors, security fencing and gates, security marking, taking photographs, keeping receipts and valuations of jewellery and fine art, etc. Additionally, ground water and tree management is increasing important as weather patterns change.
Another fundamental risk to all homeowners is under-insurance. Regular rebuilding cost assessment is recommended in order to maintain adequate buildings insurance, as well as regular expert valuations of jewellery, fine art, antiques, etc.
For expert advice and guidance, please contact the team at RS Risk Solutions – we provide a personal service and work with you to create a bespoke policy that covers your specific needs both now and as things change.
