“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.”
What is a high value home? Who needs high value 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 high value contents insurance? Many ‘High Net Worth/Mid net Worth’ Insurers will have an entry criteria that determines 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 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 high value items. These items can be high value watches (such as Rolex, Richard Mille, Audemars Piquet, Patek Phillipe etc…), high value 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. High Value Home Insurance Companies 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 and High Value Items can also be covered without the need for buildings.
There are many High Value 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.