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What You Need to Know About High Net Worth Insurance

An affluent lifestyle comes with unique risks that require high net worth insurance. Without proper counsel, many high‑net‑worth individuals find themselves grossly under‑protected by mass market insurance policies in the wake of an unforeseen claim.

High net worth insurance helps protect the lifestyle of wealthy people. As your personal assets and business ventures grow, so will your risks. Making it imperative to protect your valuables, especially the expensive ones.

Anyone who owns a luxury home, car, fine art, and other assets should work with a trusted insurance advisor to get a customized insurance policy.

What is a High Net Worth Individual?

A high-net-worth individual (HWNI) is a financial industry classification denoting an individual with at least $1 million in liquid financial assets, think cash and marketable securities. The assets these individuals hold must be easily liquidated and do not include things like property or fine art.

Some groups in the financial industry separate the HNWI population into three wealth classifications:

  • High net worth individual (HNWI): who have $1 million to $5 million in investable wealth
  • Very high net worth individuals (VHNWI): with $5 million to $30 million
  • Ultra-high net worth individuals (UHNWI): which includes those with more than $30 million

What Does High Net Worth Insurance Cover?

High net worth insurance provides bespoke coverage. These tailored HNWI policies recognize that these individuals have special needs. As a result, policies can offer extended coverage and other benefits and services not found in a standard home insurance policy.

High Net Worth Insurance can insure:

  • All your homes, including seasonal residences, condos, and properties abroad
  • Virtually every type of collection: fine art, antiques, collector cars, jewelry, wine, and more
  • Many types of vehicles, from everyday autos to motor homes and more
  • Help protect against unexpected natural disasters
  • And offer additional custom coverages

High Net Worth Personal Insurance Considerations

Insurance for material assets is an essential part of wealth management, yet many still neglect it. Consider some of the following suggestions to help you protect what you’ve acquired:

Consolidate Coverage

As you make significant purchases over time, it is normal to protect them in different ways. But this fragmented approach makes insurance more difficult and expensive to maintain. When you can consolidate coverage with one insurer and with one independent insurance advisor, it simplifies paperwork and helps avoid coverage gaps. 

Find the Experts

Most of the insurance companies that advertise heavily on TV cannot meet the complex risk management requirements of HNWI. Instead, consult an independent insurance advisor who focuses exclusively on affluent clients.

Don’t Forget About Excess Liability Insurance

Excess liability insurance, sometimes called umbrella insurance, covers claims for personal injury or property damage and increases your coverage limits. It is more affordable than you might think. This is not an area to skimp, with jury verdicts running into the millions and sometimes billions.

Premier Private Client Insurance Services is an independent, full-service insurance brokerage specializing in custom-tailored programs that protects high-net-worth clientele. As a trusted insurance advisor, you can count on us to achieve peace of mind, from safeguarding your most valuable assets to protecting your family.