All families face certain risks from fire or theft to auto accidents and job losses. But high net worth families have additional risks that most people can’t imagine. Even moderately wealthy families who maintain thriving careers need to be aware of their additional risks.
Here are five risks to be aware of and tips on how to protect yourself.
Everyone is vulnerable to cyber crimes, from the smallest business to a single person with a modest bank balance. Thieves look for any chance they can to steal and the internet has made it almost too easy. Cyber crime and theft among high net worth individuals and families are on the rise, though. Email phishing, identity theft, ransomware, stolen credit card information, and unauthorized bank transfers are the most common forms.
To protect yourself: Secure your data and the way you connect to the internet. Consider purchasing credit monitoring services who can alert you to suspicious activity sooner rather than later.
Loss of Collections
From antique sports cars to fine art and antiquities, you may have a collection that you’ve worked hard to build over the years. Unfortunately, it takes very little to potentially lose it all. A large storm, bad fire, natural disaster, or robbery could decimate what you have. Many of these items are priceless and can’t simply be replaced.
To protect yourself: Do not rely on your home insurance policy to cover your loss. Work with your insurance agent to include a special rider for your collections. Depending on the size and worth of your collection, you make want scheduled coverage that identifies the value of each item in case of loss or damage later.
Loss to Weather
Everyone is subject to damage from a hurricane or flood. But in your position, your risk may be greater than you realize. How many of your homes are located on the coast, in tropical locations, or in mountainous regions? These areas are beautiful, but they are also prone to catastrophic weather events like hurricanes, typhoons, blizzards, mudslides, and more. One big storm could wipe out your entire property, leaving you to rebuild from the ground up.
To protect yourself: Talk to your insurance agent about your insurance coverage options. A robust home insurance policy, flood insurance, and other additional forms of coverage can help you rebuild when the storm hits.
Home and Personal Security
Having a higher net worth often means one of two things — living in a nicer home and, potentially, having a higher public profile. Either situation can make you vulnerable to security problems. From home invasion and theft to stalking, your personal security is at risk as your net worth climbs.
To protect yourself: Invest in a high-quality home security system. You need a professional company that understands your specific needs. You may also want to consult with a security professional to tighten any security gaps you’re not aware of beyond adding cameras and an alarm.
You may have plenty of experiencing hiring employees for your company. It’s something you take very seriously because the success of your business depends on hiring good people. The same is true when you hire employees to help you at home. Nannies, housekeepers, caretakers, assistants, and others should be hired with risk and safety in mind.
To protect yourself: Hire as you would for a corporation — interviews, background checks, and references. You also may need more liability coverage or workers compensation coverage to protect against potential accidents and losses later.
Do you recognize potential risk for yourself in this list? Are you worried about your home or your family? Contact Charlotte Insurance today, and our private client services agent will assess your risk and offer solutions that fit your unique needs.