High net worth home insurance is not just for Lords and Ladies or Dukes and Duchesses! In my opinion, it is an essential home 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 home 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 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:
HIGH VALUE ITEMS
Standard home insurance has individual general contents limits of £7,500 but a high value home insurance policy is far higher. So if you have invested in high value furniture you could find you are underinsured.
TWO QUOTES FOR REPAIRS
In the event of a claim home insurance always required two estimates then selecting the lower of the two prices but high net worth is happy for one estimate especially where a family may have a builder/electrician/plumber/jeweller they regularly use and trust.
Damaged carpets that continue throughout rooms – Under a home insurance policy, the insurance only protects the room damaged but a High Net Worth Home Insurance policy protects all of the rooms any single run of carpet connects to.
A door/window/alarm not set – Under a home insurance policy, if the security is not in place a theft claim can be rejected, but a High Net Worth Home Insurance policy is security warranty free so the homeowner remains protected.
Accidental damage caused by pets – A home insurance policy excludes this damage but a High Net Worth Home Insurance policy still protects the homeowner.
Damage to clothing – A home insurance policy will deduct for wear and tear but a high net worth home insurance 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 high net worth home insurance 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 with a high net worth home insurance 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!
There get benefits to high net worth home insurance, public liability cover up to £5,000,000, legal expenses is £150,000, Cyber Cover for the whole family, free buildings surveys to establish the true rebuilding value, Lifestyle protections and Leak detections systems. These covers are incredibly useful should a circumstance happen and a quality high net worth insurance broker would highlight these in the event of an incident because most policy holders would be unaware these benefits.
Obviously there are many more examples between home insurance and high net worth home insurance, but this is just to give an idea of the benefits of taking out a high net worth home insurance policy.