High Net Worth Insurance is a term used for insuring personal property of Individuals with significant assets. High Net Worth is a term used in the Financial Services Industry to differentiate those Clients that exceed a given level of wealth. Whilst different Insurance Companies have different entry criteria, the easiest way to determine where Clients fit are in terms of the premium that they pay:
Mid Net Worth – A Client that Pays somewhere between £1,000 and £4,000 for their household insurance.
High Net Worth – A Client that Pays somewhere between £4,000 and £15,000 for their household insurance.
Ultra High Net Worth – A Client that Pays above £15,000 for their household insurance.
All Insurers are not the same.
The above premiums are a guide to which level of policy is likely to fit a client. However, High Net Worth Insurance Companies have different criteria and one that views a client as Mid Net Worth may be considered High Net Worth by another.
The Insurance Market has been in existence for many years and began with the likes of Hiscox recognising that there was a gap in the market for a specialist policy covering high value items. These policies were built to cover affluent individuals who were starting to collect expensive Fine Art, buy expensive jewellery or move into larger houses that cost more and more to rebuild. Over the last 20 years the High Net Worth Insurance Market has grown to more than 25 specialist Companies.
High Net Worth Insurance offers a broader, less onerous, level of cover than you are likely to find on the internet with a direct insurer. As an example, a High Net Worth Insurance policy will probably not insist that you set all disclosed security every time that you leave your property. Many direct or standard policies will have a requirement that all security is set when the property is left. This could be the difference between a burglary claim being settled or repudiated.
In addition to High Net Worth Individuals requiring household and contents insurance, they may also require High Net Worth Motor Insurance (or High Net Worth Auto Insurance). Whilst Motor Insurance can be taken out as a standalone policy, it is more usual that a combined policy is purchased by the High Net Worth Individual. Where High Value Cars can cost as much as a valued work of art, it is no surprise that specialist cover is required.
Many High Net Worth Motor Insurance policies will offer cover that is in addition to that you will find under a standard policy. Including but not limited to:
• Comprehensive any driver cover
• Comprehensive driving other cars
• Agreed value for vehicles, which is set at the beginning of the policy and will run for the policy term.
• Breakdown cover
Most High Net Worth Insurance Policies are arranged by a specialist broker, such as McLeod Insurance. High Net Worth Insurance Brokers are specialists in dealing with High Net Worth Insurance policies. They offer a level of expertise that is not available anywhere else. A reputable broker will begin by getting to know the individual and what their requirements and needs are. They will then match these requirements to the appropriate Insurance Company. An understanding of the policy wording and the cover offered by the various insurers is essential when providing cover. The devil is very much in the detail and experience and understanding of the market is essential.