We all know how important insurance is – and we wouldn’t dare think of not insuring our lives, our cars and often our homes. But sometimes we don’t necessarily consider what things could or should be insured. There are many different types of insurance out there and one such one is high net worth insurance.
Now if you haven’t heard of it, I’m not surprised – it isn’t something that everyone would consider for a financial product. High net worth insurance is something to consider when you have some luxury items in your possession that may overstep the amount general insurers cover – we’ve all insured our contents and seen that there is a maximum limit general insurers will cover, high net worth insurance is exactly what you need for those type of items.
Providers of this insurance will work extensively with some wealthy individuals to ensure all their needs are met. Financial affairs of the wealthy can be complex so each approach will be built around the individuals requirements. With limitations on the amount of cover from general insurers, providers specialise in helping them with custom arrangements so that they have the peace of mind that everything is covered. These things could include a high value home, fine art and antique items, expensive jewellery and luxury watches, anything equine related, cover for renovation and refurbishment if needed, luxury cars and much more.
Now whilst Steve and I have no need for such insurance, we both have or have had family members who used this insurance or could have benefited from high net worth insurance. With a family member with a large many bedroomed property, plenty of luxury jewellery and timepieces, luxury cars and much, much more, we are pretty sure that they wouldn’t have been covered by standard insurance so would have needed some high net worth insurance of their very own to ensure their contents were covered.
I also have family members now who don’t have it but could certainly benefit from it. Why? They have items of significant value that standard insurers won’t cover or won’t cover to the full amount. It is so important to have cover that actually covers the cost because the cost of replacing such items if they aren’t insured can become very expensive. They should really be making sure they have protection to the right level to cover their items and that they are sufficiently covered. I think they are foolish for not already having a policy in place.
It is so easy to sit there and think that a standard policy will be fine – but checking the small print will probably lead you to realise that it isn’t the case. To avoid the shock when making a claim and finding out you aren’t covered for that amount, why wouldn’t you make sure you have peace of mind? You don’t want to lose out on money when it could have been avoided.
Something that is also important to remember regarding high net worth insurance is that you yourself can be covered. There are certain jobs in certain industries where you may be able to earn a lot but there is also a high potential risk of something happening to you – think Formula 1 drivers and other sports men and women – often doing a dangerous job that standard insurers won’t cover fully – if at all. It is definitely something that needs to be considered to make sure you are fully protected.
So to recap – the benefits far outweigh any negatives, if there are actually any negatives. You will be safe in the knowledge that you are fully covered and won’t have to encounter any expensive shocks further down the line. Why wouldn’t you want peace of mind like that? You may not be in a situation now where you need such insurance but it sure helps to be knowledgeable about it for the future, just in case you do find yourself in that position.