High Value Home Insurance2019-03-21T17:36:52+00:00

High Value Home Insurance

High Value Home Insurance offers peace of mind to clients that have a little more to insure.

Here at McLeod Insurance, we work closely with reputable insurers, tailoring policies to fit our clients’ needs.

In the High Net Worth arena every client is unique and therefore every policy requires an individual touch.

There are no ‘standard insurance policies’ in this field and therefore it is especially important to trust and respect your broker.

Our MD, Richard McLeod has built up relationships over a 30year period in this industry with leading insurers such as Chubb, AIG (now Azur) and Zurich Private Clients.

ProActive in managing risk.

McLeod Insurance works closely with insurers to pro-actively manage risks to help mitigate losses further down the line.  This takes the form of client meetings and, where appropriate, Insurer appraisals.

This is all part of our comprehensive policy reviews and there is NO additional cost borne by the policyholder for these services.

We can offer portfolio solutions to clients including main residences, UK and European holiday homes and let properties.  Whilst minimising the paperwork, this approach can quite often lead to overall premium reductions.

Insuring your most valuable assets can be a minefield.  Couple that with the fact that not all insurance is the same and it becomes clear that an experienced Broker is the only option for your High Value Home insurance.

Expect more from your High Net Worth Broker.

Whilst an experienced Broker can recommend and place your home insurance with a High Net Worth insurer, that is only half of the service you can expect:

• Free appraisal service for your buildings and general contents.

• Free risk management advice at the time of appraisal.

• Introduction into reputable Fine Art Valuers, Jewellery Valuers, personal and physical security companies, companies to help mitigate loss i.e. water leak detection and fire detection.

High Net Worth Home Insurance cannot be purchased directly from the insurer.  Insurers like Chubb and AIG (now Azur) only underwrite policies brought to them via approved brokers.

Experience and knowledge of the marketplace is essential when assessing the risk of private clients and their personal possessions.

Approved brokers are trusted to check and verify all manner of assets prior to confirming the policy documents.  The very nature of the complex assets High Net Worth individuals possess means that a generic approach is not viable.

Experience in a bespoke Insurance market is key.

Due to our vast experience in this bespoke area of insurance, we are often able to secure cost savings even when clients stay with the same insurer.

If we gain a new client due to the previous broker having fallen out of favour with a client we often secure a more cost-effective solution even when staying with the same insurer.

This is due to the keen eye when reviewing the policy wording and a wealth of knowledge of dealing with these types of asset classes.

Peace of mind comes with a trusted High Net Worth Broker understanding your individual risk and matching that to the High Value Home Insurance market.

In addition, a pro-active Broker will ensure that your policy changes in line with the High Net Worth market.

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Policies are worldwide with the broadest cover.

The policies places with McLeod Insurance are worldwide, all risk, and that offer the very broadest cover in the household market.

What is a high value home? Who needs specialist home insurance?

These are questions that can be hard to answer definitively but I will attempt to answer them and also provide a better understanding of what a High Net Worth Client may expect.

Firstly, what determines a high value home and/or contents insurance?  Many ‘High Net Worth/Mid net Worth’ Insurers will have entry criteria that determine whether a risk is suitable for their policy.

The entry sums insured may be in the region of £250,000 for buildings and/or £75,000 for general contents.  Remember that the sum insured for buildings should be the rebuild cost and not the market value.

“Who needs bespoke home insurance really depends on people’s attitude to risk and how they value the additional cover, and service, a High value Home Insurance policy offers.”

Who needs High value home insurance really depends on people’s attitude to risk and how they value the additional cover, and service, a High value Home Insurance policy offers.

High Value Home insurance policies can cost more than direct web-based policies, but not always.

Home insurance can be one of those jobs that are at the bottom of the weekly ‘to do’ list. However, covering your most likely valuable asset should not be rushed.

There are direct insurers out there that offer blanket policies i.e cover for buildings of up to £1m, for instance, and contents at £100k.

These policies could fit (sums insured wise) a policyholder in a £150,000 1 bedroom house or a £3m (market value) property in Chelsea.  You cannot expect such diverse Clients to require the same level of cover or service!

Do High Value Insurance companies offer the broadest cover?

Whilst High Value Home Insurance companies offer the broadest cover in the market, they also have a ‘how can we pay’ philosophy.  They are looking for clients to insure with them for 10-20 years and to build a relationship.

You will find that the direct insurance market’s business model generally does not expect such long term relationships; this has an effect on how claims are settled.

Some Clients fall across a High Value Home Insurance policy as they have acquired items.

These items can be watches (such as Rolex, Richard Mille, Audemars Piquet, Patek Phillipe etc…),  jewellery (such as Cartier, Boodles, Van Cleef & Arpels, Tiffany etc…) or Fine Art.

Direct Insurers start to get a little twitchy once the above approaches around £15,000 in value.  Here at McLeod Insurance, we have access to Insurance Companies that can offer cover for almost infinite levels of the above.

High Net Worth Individuals in apartments or rented accommodation.

Of course, High Value Home Insurance does not have to cover the building of a risk.  High Net Worth individuals who live in apartments or rented accommodation may also access these policies.

In England, Apartments are usually covered under a combined Property Owners policy that is either arranged by the property management company or residents association.

High Value Contents insurance can also be covered without the need for buildings.

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Image credit Chubb Insurance

Most HNW insurers can NOT be accessed directly by the client.

There are many Insurance Companies and Underwriting Agencies that can be accessed via a High Net Worth Insurance Broker.

These Companies include Chubb, AIG (now known as Azur), Hiscox, Zurich Private Clients, Horizon Underwriting, Markham, Dual (this is not an exhaustive list).

These Insurance Companies have vast experience in arranging bespoke insurance policies for Clients that fit the criteria I have listed above.

Many of them have been around for many years and have helped build and form the High Value Home Insurance market that is available today.

The policies places with McLeod Insurance are worldwide, all risk, that offers the very broadest cover in the household market.

Advantages of High Value Home Insurance

Fast and full payout.  Any claims are dealt with very quickly and payments are made in full.

High Value Home Insurance policies are looked at closely prior to the policy being taken out so in the event of a claim all monies are expedited rapidly without question or delay.

Flexible and contactable.  This is certainly the case here at McLeod Insurance.

Our MD, Richard McLeod is happy to be contacted 24/7 and we give our clients both a landline and our direct mobile phone numbers to provide reassurance and assistance at all times.

Higher policy limits than standard home insurance and in many instances unlimited limits.

Complimentary home visits to verify guaranteed values of property and contents and advice on storage and safekeeping.

Coverage for increased costs for a rebuild due to bylaws in the event of a claim.

Additional payments for increased living expenses in the event of a claim.

This enables you to live in suitable premises and living standard to that which you are accustomed in the event of a claim.

This allows for extra time to acquire the correct construction professionals and architects to rebuild the property to the appropriate standards.

Cyber protection. This has been added to many High Net Worth Policies in the last few years and is something that has been taken very seriously.

Cyber Protection

As mentioned above cyber protection is new to the home insurance market but here at McLeod Insurance, we are adding this feature to policy documents so as to offer the most comprehensive coverage to our clients.

Cyber insurance will cover events such as:

• Identity theft after a transaction in a shop or restaurant.  Fraud, telephone hacking and cyber ransom.

• Home systems damage.  If you have somehow picked up a virus on your phone when on an unsecured network and have brought the virus back into your home and subsequently infected the home network.

• Data privacy issues.  If you have somehow suffered damage to your reputation online cover can be useful to cover mediation and legal expenses.

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FAQ’s

How do I know if I need High Value Home Insurance?

If your house has a rebuild cost of more than £600,000 and contents of more than £50,000 then it is worth considering a specialist broker to look at your cover.

If you have a non-standard property or a property with more than six bedrooms then you will require an experienced broker to arrange suitable cover.

Note: The policies arranged by McLeod Insurance offer unlimited cover for both rebuild and contents.

Will a High Value Home Insurance Policy cover a listed building?

Yes, listed buildings often have high rebuild costs and are especially suited to our type of policy.

Will contents be covered worldwide?

Yes, we can secure worldwide cover for your personal possessions such as jewellery and artwork should you have several residences.

What else do you offer at McLeod Insurance?

We have access to specialist services such as safe installations and vehicle tracking devices for high Value Vehicles.
Contents Insurance for high value items.

Often people will seek to insure high value items on a separate policy to that of their household.  Mostly this is due to their current household policy having a threshold on individual items.

We offer specialist high value watch and jewellery insurance.  We also offer stand-alone high value art insurance should you be looking for such policies.

Stand-alone policies can work in some circumstances.   However in the majority of cases we will seek to offer an all-encompassing policy.

This will give you the broadest cover and will include all your contents under the one high value home insurance policy.

This is a much more efficient method for a number of reasons.  Firstly from the clients’ point of view, there will be only one policy to organise.

One point of contact benefits the client for two reasons.  Firstly it means there is only one point of contact to discuss requirements and changes.

Secondly,  it means that the underwriter is aware of all of your possessions and can get a clearer understanding of your total risk.

This, in turn, leads them to be able to offer the best and most efficient premium.

Thatched roof insurance.

With close to 60,000 thatched roof properties in the UK there is significant demand for home insurance to cover the non-standard nature of these properties.

The majority of the property can be treated as any other house of that age would be treated.

Thatched homes tend to be old as there are very few new build thatched properties under construction.

The time consuming and cost implications of constructing properties of this nature means that companies rarely offer new build thatched homes for sale.

Combine this with the still shortage in thatcher’s and it is not difficult to see why there are few new build properties coming to the market.

There is however plenty of older thatched properties that require specialist high value home insurance policies.

We deal with these properties almost on a daily basis and are very well placed to advise and guide on the most appropriate solution for our clients.

Listed Buildings insurance.

A high value home policy is essential if you own a Listed property.  Listed properties are given special status by the government and are considered to be of national importance in terms of architecture or historic interest.

Listed buildings come in various grades signifying there importance.  A grade 1 listed buildings can have significant covenants.  Special planning permission is required if you would like to renovate.

Listed properties fall within the remit of high value home insurance.  You will certainly require a non-standard home insurance policy to ensure that you are adequately covered.

Flat roof Insurance for High Value homes.

Flat roof insurance falls into the specialist bracket when it comes to home insurance.  In the UK the majority of new houses use a pitched roof.

Pitched roofs are clearly the best option as far as distribution of water after rain.  The pitch ensures that the water will flow easily away.

Water is the enemy of all underwriters.   If we can happily convince the underwriter that your house is not susceptible to water then we are off to a good start.

Flat roofs can be popular if you are designing and building your own home as they do have some advantages.  They are very flexible in terms of design.

They also take up significantly less room than a standard pitched roof.  Less room is taken up as far as the footprint and yet there is no compromise on the size of the interior.

Flat roofs also perform well from an energy efficiency point of view and therefore help to keep the internal temperature stable.

Cost is one major consideration when constructing a flat roof on a new property.  Flat roofs use up fewer materials and are also easier to put up then a pitched roof.

Therefore they are a more cost-effective option for house builders.

Special attention needs to be taken from an insurance point of view.  The obvious disadvantage is that water can often sit on a flat roof.  Standing water is never a good thing.  High Value Home Insurance will cover you for flat roofs.

However, it is key to mention your home’s construction when discussing your insurance requirements.  With 30 Years of experience in this market place, we will be sure to mention this during your appraisal!

Flood Insurance for high value homes.

Flood insurance is a growing concern of many people and insurers alike.  As mentioned above water is the enemy of the insurance industry.

More and more properties are being constructed in what were previously flood planes.  Obviously proper comprehensive insurance is a most.

It seems crazy that builders are still allowed to build on flood planes.  In fact, it seems crazy that anyone would want to purchase a house on one.

That said in practice, it is a growing phenomenon.

Here at McLeod Insurance, we can help you through the process.  This means you can rest assured that your most valuable asset is properly covered in the event of a claim.

Conclusion

High Value Home Insurance is the most comprehensive coverage you can obtain on the marketplace.  This type of cover protects your home and possessions.

The addition of cyber protection can also protect your home computer network as well as your online identity.

For those with a little more to insure it is a necessity to make sure you are adequately protected.  Being underinsured is a false economy in the long term.   The High Net Worth marketplace requires specialist advice.

A recent survey by Chubb Insurance revealed that nearly half of the High Net Worth Individuals questioned were concerned about being underinsured.

Brokers needed to go further when understanding the clients’ requirements the survey concluded.

Here at McLeod Insurance, we pride ourselves on providing a more agile solution.   We understand our clients’ unique risk profiles and quickly identify and fill the gaps in coverage.

With 30 years experience in this marketplace, we have built up relationships with all the major high value insurance companies.  This ensures our clients can benefit from this specialist knowledge and understanding.

 

Richard McLeod

Richard McLeod
Director at McLeod Risk Services LLP

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Top tip

Keep photographs of every room of your house away from your property, or on a cloud. In the unfortunate event of a total loss, this could significantly expedite your settlement.