Have you heard of high-net-worth home insurance and wondered what it’s all about? More importantly, have you thought about whether or not you qualify for this type of insurance or if you even need it? Here’s what you need to know about WI High Net Worth Home Insurance.
What is high-net-worth home insurance?
High-net-worth home insurance is a coverage plan that is usually intended for homes costing $750,000 or more. In most cases, they may also cover the cost of lost or stolen jewelry or other valuables.
Unlike other types of insurance, this home insurance isn’t just a single insurance plan. Instead, it consists of a range of coverages and other services offered to owners of high-value properties. High net-worth home insurance may also be available to people that own assets of significant value.
Compared to standard insurance policies, high-net-worth home insurance usually comes with higher limits. Policyholders also have access to more personalized services than those with standard insurance plans.
Who qualifies for high-net-worth home insurance?
To qualify for this type of home insurance, your home should have a market value of at least $750,000.
As you might expect, high-net-worth home insurance is generally available only to high-net-worth individuals (HNWI). These are people that have a minimum net worth of $1 million. This amount is not an official figure but rather a consensus of an individual’s net worth.
Those with a net worth of $5 to $30 million are considered very-high-net-worth (VHNW) individuals. Those with a net worth of $30 million and higher are considered ultra-high-net-worth (UHNW) individuals. In general, however, anyone with a net worth of $1 million or more is regarded as a HNWI. Consequently, most are entitled to high-net-worth home insurance.
Why is high-net-worth home insurance necessary?
Why is this insurance even necessary? Isn’t standard home insurance sufficient to cover the needs of HNWI?
Like most wealthy individuals, HNWIs generally have more complex requirements than other policyholders regarding risk management. This is mainly due to the high value of their possessions.
The need for more complex and more comprehensive coverage is especially true for homeowners. With homes valued at $750,000 or more, they need insurance that covers that amount in case of disaster or calamity that results in loss or damage to the property.
Even among HNWIs, the home is probably the most valuable of all their assets. Therefore, it likely requires the most comprehensive coverage.
But as mentioned previously, the home’s value isn’t the only thing that this policy covers. Throughout most of the U.S., the coverage provided by this type of insurance extends to jewelry and other valuable items that may be lost or stolen separately.
What are the benefits of high-net-worth home insurance?
The most significant benefits of this insurance fall into three general categories:
- Expanded coverage and limits
- Added benefits and services
- Personalized care and expert service
Policyholders can generally expect broader coverages and higher limits compared to other insurance plans. These apply to the property itself as well as individually covered items.
Expanded coverage limits are typically provided for items usually subject to strict limits, such as cash, artwork, and jewelry. For example, while standard homeowners’ insurance policies impose a $1 million cap for overall coverage and $1,000 for individual items, the limits with high-net-worth home insurance are usually much higher.
In addition, you also get expanded limits for structural coverage, for a second home, and even sewer and drain backup. Plus, you get coverage for items such as artwork, jewelry, currency, and even firearms. Some plans will even cover additional living expenses, landscaping, and liability.
Policyholders of high-net-worth home insurance also receive specialized services that most insurers don’t provide. For example, you may have access to specialists who can assess potential risks to your home and help you minimize them.
The personalized care and expert services available these policyholders are other perks worth considering. Although the specifics of these benefits vary from case to case, you can generally expect insurers to go well beyond the services offered by other companies in ensuring your comfort and convenience when you have to put the insurance to use.
High-net-worth home insurance is undoubtedly a premium service. But if you want the comprehensive coverage and personalized service that your high-value property requires, investing in this type of insurance is essential.
