Those who have amassed a sizable net worth tend to have collections and assets that reflect their wealth. They also often enjoy the luxuries of high-value homes, a staff, and the ability to travel throughout the world, often to visit one of their multiple properties. But these so-called luxuries often require higher coverage limits and fewer gaps, so you’re not left exposed if something priceless is damaged or stolen. This is one of the common issues, along with replacement costs and liability limits that these individuals face, insurance-wise.
So, how can you ensure that your insurance gaps are covered? Here’s a useful checklist to get you started.
Start with a Household Risk Inventory
The easiest way to manage this process is by going over everything that you own in some depth, starting with your properties and moving on to your vehicles, including all collectibles and “toys” like motorcycles and RVs. From there you can go over a list of the people who you employ, ensuring that they have workers’ compensation insurance, as well as anything else that’s needed. Finally, you should consider your liability limits, especially as they pertain to your lifestyle.
Homeowners Coverage Gaps to Review
Once your household risk inventory is completed, it’s time to look for gaps in your homeowner’s insurance coverage. Things to consider include the rebuild cost and market value of your home, any need for high-end materials or specialty contractors in those rebuilding costs, as well as code upgrades, additional structures on the property, and water issues, especially those pertaining to flooding.
Personal Property Limits that Usually Fall Short
Your personal property is next on the list. You more than likely have collections of jewelry, fine wine, watches, or other items that are worth far more than the sub-limits built into homeowner’s insurance plans. You need to have your collectibles appraised to see which specialty insurance policies you’ll need.
Liability Limits and “Real World” Scenarios
There are many things that can test the limits of your current liability insurance policies. In order to cover any gaps, you’ll need to consider umbrella insurance limits, plus things that could go wrong in and around your home, like dogs biting people, your teen drivers on the road, and guests slipping the wrong way into the pool.
Auto Coverage Details Often Overlooked
Your car collection more than likely reflects your net worth. It’s hard to resist those rare classics and luxury sports cars. The only problem lies with your insurance policies. Are they for the right amounts? Do you need special OEM parts coverage? These are things to consider.
Watercraft, Recreational, and Specialty Exposures
Moving beyond your homes and garages, there are your boats and other watercraft, as well as utilitarian specialty vehicles like golf carts and ATVs. These, as well as anything that goes with them, like expensive fishing equipment, need to be properly insured as well.
Have Questions? Contact Charlotte Insurance
Want to learn more about insurance for high-net-worth individuals? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan you need.