HNWI, which is short for a high-net-worth-individual, is a person with a net worth of at least $1 million.
If you are one of these lucky individuals, you are in a situation that very few people manage to achieve but that everyone dreams of.
In addition to a life of luxury that allows you to do all the things you have long aspired to, you most likely still have very large expenses that go beyond what the average person has.
You probably have mortgages and high living costs that may not affect your wealth as such but still put you at risk during a recession. Therefore, it may be worth considering investing in a high net worth insurance.
A high net worth policy is thus designed for individuals and families who have several expensive assets to protect in value and/or quantity.
These policies cover homes of greater value, large collections, end-of-life expenses, and virtually anything that might be considered worth insuring.
The mainstream insurance market typically does not have the capacity to have insurance for such large amounts, so special insurers step in to cover households with high net worth individuals.
Even though there are not nearly as many insurance policies to choose from for a high-value person as for the average person, there are still a number of different coverages to choose from.
Keep reading if you want to make sure you get the best insurance deal for your wealthy lifestyle!
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Identify What You Are In Need Of Covering
Policies designed for high-worth individuals are already quite a niche, but they still differ depending on which company you choose and what type of coverage you need.
Some high-net-worth insurance policies cover only a certain percentage of a home renovation, while others cover the entire improvement.
Some insurances would cover the cost of personal possessions if anything were to happen to those, such as large and expensive art or jewelry holding.
Some cover costs such as burglaries and robberies that cause devastating consequences, and others may cover personal liabilities, such as medical bills or other expenses.
The first step towards finding a good insurance deal is to identify what you need to insure.
Sure, many expenses are unforeseen, but it is still a good idea to consider what you might need to cover more than others.
Otherwise, there is a risk that you will pay an unnecessary amount for something you will not benefit from.
If you have a garage full of fancy sports cars, you will want to make sure they are covered in case of a break-in, just as you will want to make sure your holiday home in Europe is covered in case of an accident there.
Use An Insurance Broker To Find The Best Option For You
As many insurance companies offer tailor-made solutions for high-value individuals, it may be wise to use an insurance broker to quickly find the best option for you.
By using a reputable asset insurance agency, you can ensure that you get an insurance policy that actually covers your needs and does not compromise on anything.
An insurance broker works in such a way that they cooperate with several different insurance carriers on the market, in this case, carriers that offer coverages for high net worth individuals, and send your application to them.
The broker will forward your application by filling in exactly what you need in a form on the broker’s website.
Once the insurance carriers have reviewed your needs, you will get a couple of quotes that you can compare until you find an option that suits your exact needs.
What Makes High Net Worth Insurances Different From Standard Insurances?
As we have already discussed, high net worth insurance is aimed at people with a net worth of at least $1 million.
Standard insurance covers the needs of the vast majority of customers but often cannot help those who need to have larger expenses covered, such as those with expensive homes, collections of fine artwork or high-end jewelry, expensive vehicles, and so on.
Since customers pay more for the product, they can often expect a better service than that offered by regular insurance companies to their customers.
Therefore, insurance companies targeting people with a higher than standard income often offer better benefits to cover all possible expenses.
They also often offer other benefits such as travel/medical evacuation programs or support for the collection of inventory, which is member benefits usually available at no extra cost.
Do I Need High Net Worth Insurance?
As increased wealth leads to increased personal property, insurance for a high net worth is almost inevitable.
Many highly successful people assume they do not need insurance because they think they have enough money to cover any expenses. But the fact is that people with high net worth’s are also more at risk of losing their capital because they very often have possessions worth millions – expensive homes, luxury collections, exotic sports cars, etc.
Insurance for wealthy individuals covers all sorts of costs that come with high-value belongings, so you protect all your assets and, not least, your lifestyle!
After all, you have fought hard to get where you are today, and it would be nothing but a shame if a little laziness resulted in you suddenly losing your high net worth.
But before you take out an insurance policy, we suggest you shop around and compare quotes to make sure you only get the best possible cover for your needs and for the best price.
It is easy to choose the first best insurance because it seems satisfactory, but although many insurance policies are quite similar, it is better to spend a little extra time finding the insurance that best suits your needs or to use an insurance broker to get the job done much more efficiently.
That way, you will not only get the insurance that gives you peace of mind, but also insurance that does not cost you more than it should.
