$158.3 trillion is the collective net worth of current global elites. The United States has 18.6 million such high net worth individuals who control most of the factors of production.
Most high net worth individuals are severely under-insured. The patterns of under-insurance could be due to the limited awareness that such coverage exists. However, many insurance products and services designed to suit the needs of high net worth individuals are available to serve your needs.
Does your family have a high net worth? If so, then you might be under-insured. Find out why high net worth insurance is a must-have!
The Risks Increase as Net-Worth Grows
If you’re a high net worth individual or family, you’ll likely have expensive hobbies, property, and other assets, which are often uninsured or under-insured. Failure to have a clear distinction of the actual market value of such assets can be disastrous in case of losses. This is often a result of a mismatch between what you may need as a high net worth client and what the insurer offers.
Being at-risk and uninsured may present a significant concern for high net worth individuals. You may need to consult a quality high net worth insurer to guide you through the process of matching your insurance needs with what they’re capable of offering. This assessment will ensure that the insurance agents document all the hard to replace possessions.
Once all your belongings are appraised correctly, you’ll then have a better idea of the best insurance coverage for your assets.
What Are Some of the Risks High Net Worth Individuals Face?
As a high net worth individual, you’ll often shoulder a higher degree of risk than most averagely insured clients. It means your high net worth insurance coverage must reflect all your assets, liabilities, and activities in a way that ensures exclusive indemnity. Your insurance policies must be inclusive in prevention and in cases of loss.
You may be wondering what kind of added risks you may be prone to as a high net worth individual. The following list can offer you a better idea.
Our social circles have expanded significantly in the age of social media and technology. The number of connected tech devices you use to communicate both online and offline may put you at risk. Considering that those people around you know your status in society, you’re likely to face recurrent instances of cyber threats.
Concerns related to identity theft may be common in your case. You may deal with numerous instances of attempted access to your bank accounts through forged usernames or stolen passwords. You’re also likely to experience innumerable instances of phishing scams through your email addresses.
The problem with most high net worth insurance coverage is they don’t cover such emerging threats related to cybersecurity. You may end up incurring significant losses from such instances of cybercrime in the end. But with a trusted provider, this is no longer a concern.
2. Weather-Related Losses
If you fall within the category of elites in the community, you’re likely to own property in disaster-prone tropical regions. Most of these regions provide a perfect getaway near beaches. You may also own property in the mountainous areas away from the hustles of city life.
While owning property in such settings is everyone’s dream, you’re also prone to instances of catastrophic weather patterns. Hurricanes, floods, or cases of volcano eruptions may not be frequent. But once they occur, they leave significant damage in their wake.
Most high net worth families don’t see the need to consider an insurance policy that covers such risks until the reality dawns on them. Nevertheless, the truth is that such properties are worth a fortune and need more insurance against such acts of God.
3. Kidnap and Ransom
This may seem like a scene straight out of a movie description. But many cases have been reported in recent years of high net worth individuals being kidnapped for ransom. Malicious people know your social and economic status.
This makes you a potential target each time you step out. You may consider hiring extra security to guard you, but things happen. Most high net value insurance covers don’t consider this uncertainty.
However, you need to seek the services of a forward-thinking high net worth insurance provider. Such a move would ensure that you’re safe from losses incurred in case of a kidnapping attempt.
4. High-End Cars
Autos are a significant asset in many high net worth families. You appreciate class and therefore, own high-end vehicles.
Imagine having to deal with the conventional ineffective approaches to auto insurance most providers exhibit. This can be frustrating and not worth your energy.
The best option would be to take up high net worth insurance for your sleek range of cars. Traditional insurance may face inadequacies in the provision of such critical high-end insurance coverage.
Most of the artwork in your home signifies opulence and must be worth a fortune. It’s possible to indemnify such expensive artwork. This is an investment that’s worth millions of dollars and requires an insurance policy that equates such value.
Luckily, high net worth insurance offers such indemnification to cover the gap that traditional insurers have struggled to fill over the years. Your artwork can now be insured, regardless of the current and future worth.
6. High Net Worth Insurance for Homeowners
Most high-value homeowners spend their entire lives renovating their dream homes to fit their needs and aspirations. Your palatial home must be your single greatest asset. As such, it must be indemnified to match the total current and future net worth.
While you may consider the homeowners’ policy contract provided by traditional insurers, it may lack the robustness to indemnify a high-value home. You need to consider the option of a high net value insurer with the capacity to provide insurance for your family home for what it’s truly worth.
You No Longer Have to Worry About the Possibility of Losses as a High Net Worth Individual
As your net value grows, it’s critical that your insurance policy also expands to cover your needs. Considering a well-packaged high net worth insurance policy can ensure that everything that’s of value is safeguarded from potential losses. You must partner with an insurance provider who understands your needs.
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