Risk Exposures for High Net Worth Individuals

Many people think of their insurance as a " one size fits all " solution. However, often higher net worth clients have not had one person to walk them through their insurance portfolio, their potential risks, and possible solutions to their unique challenges.
With that in mind, here are 4 potential areas that a good agent must help you think through as a person of high net worth:

1. Assessing the value of assets: High net-worth individuals often have valuable assets such as art, jewelry, and collectibles that may not be adequately covered by a standard insurance policy. A professional insurance advisor can help assess the value of these assets and ensure that they are properly protected.
2. Umbrella liability coverage: High net-worth individuals may be at a higher risk for large liability claims, such as those stemming from a lawsuit. A discussion about an umbrella liability policy can provide additional coverage to protect against these types of claims. Many people obtained an umbrella policy years ago for a standard "$1 Million" when they heard "you need an umbrella."

Now, years later, they've never had professionals revisit that facet of their lives. Their assets have changed, but their coverage hasn't been updated to match their needs. They are at risk.
3. Complex portfolio coverage: High net-worth individuals may own multiple properties, including vacation homes and rental properties. It's important to ensure that all properties are adequately insured and that coverage is tailored to the specific needs of each property. Are these properties just for personal use or are they being rented? Are there unique exposures that need to be accounted for like a higher risk of hurricane damage or flooding?
Do they own collectible cars or boats? While a standard boat or auto policy might cover these assets at Actual Cash Value, or the depreciated value, that’s not sufficient to replace these vehicles as “collectors” items. A good advisor will ensure that these possessions are protected at Agreed Value, allowing the owner to safely and confidently drive without worrying about taking an unnecessary loss. These are questions that must be considered.
4. Business insurance: High net-worth individuals may own or have an interest in a business, and it's important to ensure that the business is adequately insured to protect against financial loss due to accidents, lawsuits, and other risks.