Frequently Asked Questions
Below, we answer the industry’s most frequently asked questions. Please note, insurance is unique to your lifestyle and your personal risk tolerance. We advise you to consult with a Premier Private Client advisor for high net worth insurance recommendations tailored to your individual needs.
What is Group Personal Excess Coverage?
A group personal excess policy provides that additional layer of protection with some added benefits of a personal umbrella policy.
A major benefit of group personal excess over individual excess coverage is that there is no individual underwriting. That means that as a member of a group you are automatically eligible to purchase increased coverage and $5 million of uninsured and underinsured motorist protection. It does not matter how many houses, cars, boats or teenage drivers you have; even your driving record is not a factor.
NOTE: It is important to understand that the first $1 million of coverage does not “stack” or go above any existing umbrella that you may currently have.
Do I need umbrella coverage?
It depends, but almost anyone can benefit from obtaining personal umbrella insurance. If you have personal assets you want to protect or hobbies that pose higher risks of injury to other people, such as boating or hunting, you should strongly consider adding the protection that a personal umbrella insurance policy provides. Consult with a Premier Private Client advisor to determine if this solution or an alternative fits your needs.
What is umbrella or excess liability insurance?
Umbrella or excess liability insurance is a type of extra liability insurance that addresses potential coverage gaps in your existing insurance coverage. An umbrella policy protects you against major claims that are higher than what your other insurance policies cover. An umbrella or excess liability policy provides an additional layer of financial protection.
Do I need my own insurance policy if I rent or borrow an aircraft?
You should definitely have your own insurance policy even if you rent or borrow an aircraft. Most people think they will be automatically cover on the owner’s policy, but that’s not the case. The insurance carrier could make a payment to the actual owner of aircraft and then collect the money from you after the fact. Consider purchasing a “Non-Owned Aircraft” insurance policy to protect your personal assets.
How much liability insurance do I need for my aircraft?
The appropriate coverage is different for everyone. It will be based primarily on the exposures you have during operation of the aircraft. Factors that go into determining the appropriate limits include: number of passenger seats, average passenger load per flight, the composition of the passengers (employees, family, etc.) and what your personal assets are.
Work with a Premier Private Client advisor to find the right solution for you.
What types of hazards are typically covered by boat insurance?
Typically, a standard boat policy covers you in the event of a loss or damage resulting from a collision, fire, lightning, theft and vandalism. Consult with a Premier Private Client advisor to tailor the right solution for your watercraft based on your cruising itinerary.
Do I need insurance for my boat if it is not that expensive?
Your financial risk as a boat owner doesn’t just include the cost of replacing or repairing your boat. For instance, you should consider potential medical bills if you, someone on your boat, or another person is injured in an accident. Also, there is potential liability for repairing property damage.
The perceived “value” of a certain piece of property is a common misconception as the most important focal point when purchasing insurance. Rather, your risk profile, is the determining factor and something that Premier Private Client will develop with you.
What’s the difference between Uninsured and Underinsured motorist coverage?
An uninsured driver is someone who does not have insurance, or whose insurance company either denied their claim or was not financially able to pay it. An underinsured driver is someone who met minimum legal financial responsibility requirements, but did not have coverage limits high enough to pay for the damage they caused.
I have an old vehicle which I do not want to spend a lot on to insure. Is there any reason why I should carry higher than my state’s minimum liability limits?
Even if you have a “junker,” that on the surface is not very valuable, you may want to carry higher than your states minimum liability limits. That will help protect your personal assets from any excess liability assessed in the event of an accident.
Will my personal auto policy provide coverage if I use my vehicle for business purposes?
Some insurers may provide coverage for business use vehicles depending upon the type of vehicle and its particular use in business, but you may need to purchase a commercial auto policy to receive the coverage you need. You should consult with a private client advisor to determine a solution that fits your needs.
How do I know if I need more auto insurance coverage?
If you have any financial assets, even retirement savings, but you have an auto insurance policy with your state’s minimum liability requirements, you are likely underinsured.
In an event where you become liable over your limits, you could be forced to liquidate assets. So how much insurance do you need? It depends on your specific risk profile. Contact a Premier Private Client advisor to help you find a solution that best meets your needs.
What about fires?
While coverage will be addressed through the customization of your insurance program, there are significant loss control services that potential insurance carrier partners can provide as well as some additional public resources.
Learn about the latest research on fire detection, suppression and notification systems from the U.S. Fire Administration.
If you live in an area susceptible to wildfires, there are many preventative actions you can take to better protect your home. Learn more at readyforwildfire.org.
This represents just one simple example of Premier Private Client’s commitment to reviewing your risk profile from an all-encompassing stand point. We routinely offer additional resources and information to ensure that you are adequately informed to protect you and your assets.
Should I purchase earthquake insurance?
As nearly 80% of all the planet’s earthquakes occur along the rim of the Pacific Ocean, insuring against this peril is a responsible consideration. However, it would depend on your risk profile and financial objectives as to whether or not the purchasing decision is right for you. We will walk you through your options to assist with this determination.
In the meantime, you can help protect yourself and your loved ones through emergency planning and education by visiting http://www.ready.gov/earthquakes.
Do I have flood insurance?
In general, most standard homeowner’s insurance policies do not cover flooding. So since, anywhere it rains, it can flood, it’s important to have protection.
If you believe you need flood insurance and your insurance carrier will not provide it, first contact Premier Private Client to discuss further or you may obtain coverage through the Federal government’s National Flood Insurance Program ( NFIP) which we can also review on your behalf.
What’s the difference between “actual cash value” and “replacement cost”?
When it comes to protecting your personal valuables, there are two different types of coverage valuations: actual cash value and replacement cost. Actual cash value covers what you’d get if you sold your valuable today, generally a lower amount than what you initially paid due to use and depreciation. Replacement cost coverage pays you the amount of money you’d need to buy a brand-new valuable to replace your old one.
What is “floater” insurance?
A typical homeowners insurance policy contains caps on the amount you can recover in the event of an insurance claim. Items that are easy to move, such as art, electronics and jewelry, generally have caps at lower levels than their full value. A “floater” policy adds extra protection for your valuable possessions.
Do I need to buy extra insurance to cover the grounds around my house?
If you have outbuildings (such as a barn), special landscaping (with rare or expensive plants) or hardscaping (such as a pool, fences, retaining walls, walkways or decks), your homeowners policy likely provide coverage at only a portion of your policy amount (typically 10%). However, some policies exclude damage caused by a particular event, like wind. Consult with a private client advisor to make sure you have a solution that fits your lifestyle.
What is “course of construction” insurance?
Course of Construction insurance, also known as Builder’s Risk insurance, covers potential damages to a structure where it is presently being constructed. Damage from fire, wind, theft and vandalism are typically covered in most of these policies. The coverage can cover just the structure or extend to the materials on the job site waiting to be installed or transported, through different policy endorsements.
How much coverage do I need for my home?
Home insurance values are determined on a replacement cost basis. So the question becomes how much would it take to entirely rebuild your home in today’s market if it were wiped off the map? Many homes are insured based on values that are underestimated, especially homes that have undergone extensive renovations and improvements. Consult a Premier Private Client advisor today to make sure you have the right amount of coverage.
What are admitted vs. non-admitted insurance carriers?
Admitted: An insurance carrier that is “admitted” has been approved by a state’s insurance department. That means that the company must comply with all state regulations regarding insurance and in the event that the insurance company goes bankrupt, the state will step in to make payments on claims as necessary.
Non-Admitted: An insurance company that is “non-admitted” has not been approved by the state’s insurance department. That means the company does not necessarily comply with state insurance regulations and if the insurance company becomes insolvent, there is no guarantee that your claims will be paid. However, non-admitted insurance companies have much more pricing flexibility, as they don’t have to submit their rates to the individual states for review.
How do I know if I have enough insurance?
In general, if the total amount insured in your policy is less than the real value, then you likely don’t have enough insurance coverage. However, it truly depends on your personal financial needs. Contact a Premier Private Client advisor to determine the insurance strategies you need.
How we convey changes across lines of coverage to you.
Our detailed analysis of your risk profile is presented in a comparative proposal for your review. We will identify and clearly communicate coverage recommendations and enhancements available in the marketplace, identification of potential gaps in coverage, changes in the coverage, limits of liability strategies and more. Our singular objective is to ensure that you are provided with the pertinent information necessary to find the solution that works for you.
What insurance carriers do we work with?
We access all viable insurance carriers, both domestically (i.e. AIG) and internationally (i.e. Lloyd’s of London), to ensure customized coverage that meets your personal insurance needs.
What locations do we write insurance for?
While we call Southern California home, you don’t have to in order for us to partner with you. No matter where you live, work or play, coast-to-coast, even internationally, we can find a customized risk management solution for you.
How we work.
Premier Private Client’s advisors use a consultative and collaborative approach to obtaining a comprehensive perspective of your current risk profile. That risk profile is used to develop an insurance and risk management strategy to protect you and your assets from exposures. We will present our detailed analysis and recommendation for your consideration and maintain a close relationship as your risk profile evolves.
What to look for in an insurance carrier?
When it comes to selecting an insurance carrier, there is more to consider than just price. As a start, you should consider financial stability, claims handling reputation, product offerings in comparison to your product requirements, risk management and loss control services, etc. Premier Private Client has extensive experience with the industry leading insurance companies and will speak to these considerations as well as others when recommending a solution.
What to look for in an insurance broker?
An ideal broker has both the expertise and support staff to provide a personalized level of service. They should also have direct relationships with specialty insurance carriers needed to tailor coverage for your specific exposure.
Premier Private Client is committed to offering an unparalleled service package, specifically designed to meet your personal insurance and risk management objectives. We have longstanding relationships with many specialty insurance carriers, including AIG and Chubb, among others.
Why work with an independent insurance broker?
When it comes to protecting your financial success, it takes extensive experience and specific expertise to deliver value adding solutions. An independent insurance partner, such as Premier Private Client, will invest the time and effort needed to gain an intimate understanding of your needs. Equipped with this information, we can then approach various insurance carriers to develop solutions directly tied to these needs.
In general, the captive insurance agents that work exclusively with one insurance company will spend more time redirecting your attention to certain “sales points” as directed by corporate governance in an effort to distract rather than address.
Working with an independent insurance broker during the claims handling process will also pay dividends as we will be your advocate to ensure that your claim is handled fairly and expeditiously.
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