What is the Difference Between Home and High Net Worth Home Insurance?

High net worth home insurance is not just for Lords and Ladies or Dukes and Duchesses! In my opinion, it is an essential insurance policy for anybody fortunate enough to have assets and a lifestyle worth a little extra protection.

I have been working within the high net worth insurance market for over 15 years, and I’m often asked the question ‘what is the difference between home and high net worth home insurance?’

In a nutshell, most home insurance policies provide cover for a range of insured perils such as fire, theft, water damage, lightening, accidental damage etc. If the loss falls outside of these perils, the insurance is not activated and therefore there is no insurance protection is in force. Cover under a high net worth home insurance policy works differently, it works on an all risks basis and applies anywhere in the world and the benefit of this is everything is insured unless specific exclusions apply.

Below are some examples of claims excluded under a standard home insurance policy, but protected under a high net worth home insurance policy:

CARPETS
Damaged carpets that continue throughout rooms – Under a home policy, the insurance only protects the room damaged but a High Net Worth policy protects all of the rooms any single run of carpet connects to.

SECURITY
A door/window/alarm not set – Under a home policy, if the security is not in place a theft claim can be rejected, but a High Net Worth policy is security warranty free so the homeowner remains protected.

PETS
Accidental damage caused by pets – A home policy excludes this damage but a High Net Worth policy still protects the homeowner.

CLOTHES
Damage to clothing – A home policy will deduct for wear and tear but a HNW policy is new for old on clothing. To give an example, a Gentleman client of mine had his custom suit trousers ripped, so they were replaced new for old. In addition, the Taylor explained a new waistcoat and jacket would be required so they would match, and due to the pairs and sets clause under a HNW policy this was paid for by the insurer also. This also works very well for ladies handbags that are stolen or lost.

CONTENTS OUTSIDE OF THE HOME
A home insurance policy has a Personal Possessions section, usually up to a maximum of £5,000 for contents outside of the home, but a HNW policy all contents are insured on a worldwide basis. To give an example, a client of mine had all of their luggage lost on their way back from a two week holiday. As it was a family of 5 (including teenagers!) the items lost actually exceeded £12,000 and this was predominantly made up of clothing and personal effects!

Obviously there are many more examples, but this is just to give an idea of the benefits of a high net worth home insurance policy.

If you wish to discuss your home insurance requirements further, or would like a high net worth quotation, please contact Carl Sharp on 01189 165 487 or carl.sharp@macbeths.co.uk

Author: Carl Sharp | April 17th, 2018

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Carl Sharp
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk