Personal insurance policies are financial products that you have been purchasing for years and might not be something you think of much. But in your later years, as you may have acquired more wealth, your exposure related to these annual policies has changed. As a high-net worth individual, carefully considering these policy coverages carries a great deal of importance.

Working with an experienced and trusted insurance agency allows you to have your individual situation evaluated to make sure that your risk exposures are properly covered.

High-net worth — and ultra-high net worth individuals — are a growing population segment in the US, as wealth is being passed down from Baby Boomers to their Gen-X and Millennial children. And with some of this newfound wealth, comes the responsibility to protect it.

Insurance Products to Evaluate

Homeowners Insurance

High-valued homes often require insurance coverage that extends beyond the terms of a standard policy. Custom builds, such as finished basements, remodeled kitchens, and luxury pools, must be adequately protected as you continue to build out your dream home or vacation home.

In the event of a total loss, coverages known as Guaranteed Replacement Cost or Extended Replacement Cost become essential for properties priced over a certain value. Several additional coverages should be considered, including the following:

  • Water Backup Coverage
  • Service Line Coverage
  • Equipment Breakdown
  • Ordinance or Law Coverage

Auto Insurance

From luxury vehicles that may be your daily driver to exotic vehicles that may only be driven on special occasions, it is important to have these vehicles and all drivers properly insured. Whether it’s the car’s horsepower, the custom features, or the sheer volume of high-end cars in the garage of a high-net worth individual, it’s essential to have the proper insurance policies in place.

Certain specialty insurance carriers will often offer more coverage at a lower premium cost while also having a dedicated claims team that is accustomed to working with high-value and specialty vehicles. In addition to specialty coverage, high-net-worth clients often require higher liability limits on their vehicles, including higher bodily injury and under/uninsured motorist limits.

Jewelry, Fine Art, Furs, and Other Valuables

High-value assets such as jewelry, fine art, and furs are not always covered by standard insurance policies. Standard homeowners insurance policies will have restrictions on the amount that they will insure for these items. Having these personal articles scheduled on a policy properly will ensure that they are insured to full value and protected in case of damage or theft.

Excess Liability and Umbrella

While your homeowners, auto, and other insurance policies have liability limits up to a certain amount, the terms of an umbrella policy transcend your other policies, providing extended liability protection up to an additional coverage limit.

In the event of a claim that exceeds your policy’s coverage limit, your umbrella policy would kick in as backup coverage. Umbrella policies offer important, invaluable coverage against unforeseen personal injury, property damage, or other claims as a reliable means of protecting your assets and financial stability.

There is no “right” amount to have for an umbrella policy. Coverage limits start at $1 million — the minimum coverage that our agency recommends. Certain insurance companies offer policies that cover up to $5-10 million. If an individual requires more coverage, then we would coordinate coverage by layering an additional policy with another insurance company.

Yachts, Boats, and Airplanes

While hobbies that take us out into the world provide some of the most enjoyable moments in life, they also tend to carry heightened risk. That’s why it’s important to ensure these activities — and the yachts, sailboats, and aircrafts used in the process — are adequately covered.

Both new and experienced watercraft owners should purchase personal coverage that protects against physical loss or property damages. High-net worth clients should also consider properly scheduling these items on any umbrella or excess liability policy.

Life Insurance

Life insurance policies offer peace of mind that your loved ones will be protected after you pass. In securing the right insurance policy, it helps to reduce stress related to making important decisions about the future. Keep in mind that as your needs change over time, your policies need to be adjusted accordingly.

That’s why it’s important to periodically conduct a life insurance policy audit with a trusted insurance agent. Our team of life insurance advisors will work with you individually to ensure that all circumstances are considered while putting proper life insurance plans into place. In performing an effective audit, we will help you answer the following questions:

  • Have your financial goals and objectives changed?
  • Has your income changed?
  • Has your health or lifestyle changed?
  • Has your family status or business structure changed?
  • Is your current coverage still competitively priced?
  • Are the designated beneficiaries correct?
  • Has your existing policy lapsed or is a higher premium currently required?
  • Will your policy coverage last long enough?

Disability Insurance

You may not think about long-term disability insurance — especially if you are in your prime earning years. The truth is, you are much more likely to become disabled than you are to pass away prematurely. As such, having a disability insurance policy in place allows you to have a safety net should you be unable to work for any reason.

Anything from cancer and a mental illness to a serious injury or stroke can stall your opportunity for long-term profitability. Re-evaluating your unique risk profile in the context of the disability coverage that you may need in the event of an accident or diagnosis will go a long way in safeguarding your earning potential — and long-term high-net worth.

How Doeren Mayhew Insurance Group Delivers Customized Insurance Solutions

At Doeren Mayhew Insurance Group, we deliver the specialized expertise that this exclusive set of private clients should expect. Working with a knowledgeable agent to ensure that you, your family, and your personal property are correctly insured.

We help our private clients take inventory of their exposures to make sure that their insurance policies encompass the appropriate coverage for their needs.

Have you spoken to your insurance agent recently?

As a high-net-worth individual, there are multiple things to consider when it comes to insurance coverage — from the simple to the complex. Making sure that you and your family are protected is one of the most important things you can do, and it’s also our single most important goal as your insurance advisor.

Find out why we’ve been recognized as a leader in providing innovative insurance solutions that help our clients reach their financial goals throughout their careers and lifetime — for more than 130 years.

Contact us to schedule an in-depth consultation with one of our reliable insurance advisors to identify what your unique insurance needs are today, and how we can ensure they’re being met for the long-term.