Insurance coverage is the cornerstone of personal risk management for high-net-worth individuals (HNWIs), defined as people with liquid assets in excess of $1 million. If you’re a millionaire, you likely have special needs to consider when assembling a portfolio of coverage. Here are areas that you should pay particular attention to.
Secondary home. If you have a second home for seasonal or occasional rental use, insuring this property can cost more than the policy for your primary residence. This is in part because carriers consider a frequently unoccupied property at greater risk. Additionally, if you employ domestic help, such as a housekeeper, groundskeeper, nanny or cook, you may want to consider workers compensation insurance to cover any on-the-job injuries. In fact, some states may require it, depending on the number of workers you employ.
Life insurance. Your beneficiaries may or may not need assistance paying off your primary mortgage. But if you anticipate a hefty estate tax on their inheritance, you may want to consider taking out a life insurance policy in their name to relieve them of this burden.
Umbrella policy. This type of insurance is commonly sought after by HNWIs who may be a greater target for lawsuits. This generally affordable coverage can extend the liability protection offered from homeowner and auto policies.
Yacht and personal watercraft. While there is no universal standard for what constitutes a yacht, a boat that’s longer than 26 feet with sleeping accommodations may require a yacht policy. This coverage can protect the ship from damage, safeguard belongings and equipment stored aboard and even insure against environmental damage due to a fuel spill. We Insure can also provide coverage for speed boats, sailboats, jet skis, fishing boats and other personal watercraft.
Identity theft. High-net-worth individuals are at greater risk for identity theft for obvious reasons. Identity theft protection can be invaluable in safeguarding you from the damage to your credit that can result from someone stealing your personal information and taking out credit in your name.
Collectibles. Once your liquid assets climb into the seven-figure range, there’s a greater likelihood that your personal property may comprise items that are often excluded from typical homeowner policies. Exclusions can include fine jewelry, antiques, artwork, guns and even high amounts of cash stored in the home. You’ll need a special rider or policy to cover these types of items.
Vintage, classic and antique cars. In addition to the vehicle you use for primary transportation, you may also have one or more classic cars. The insurance needs for vintage cars can require special coverage types, such as spare parts and tools coverage to maintain and restore the vehicle, as well as vehicle-under-construction coverage, which helps the owner keep pace with restoration work.
Private plane. If you’re fortunate enough to fly the friendly skies in your own private jet, insurance can provide important protection for you and your passengers. A good policy can protect against accidents, as well as damage from bad weather, vandalism or other causes, whether you’re up in the air or on the ground.
We Insure understands the insurance needs of high-net-worth individuals. Our experienced agents can find the right policies and weave together a blanket of protection to address the unique set of risks that you and your family face. Call your local agent to schedule a complimentary personal risk assessment today.
The information contained in this page is provided for general informational purposes only and may not be applicable to all situations. We Insure makes no guarantees of results from the use of this information.