High-net-worth individuals don’t just have a lot of money in the bank, they also have quite a bit invested in things like designer handbags and watches, vehicles, and art. All of these tend to be a bit flashy, no matter how hard you try to stay understated, putting you and your family at risk for break-ins, other types of theft, and additional liabilities due to your lifestyle and all of those high-value, very visible assets.
So, how can you protect them? An umbrella insurance policy is the best answer, leaving you with only one question, “just how much coverage do you need?”
Why Standard Liability Limits May Not Be High Enough
For the average person, standard liability insurance policies are enough. However, those who have a high net worth have additional things to worry about, as well as expensive items that are at risk. When you factor in rising legal costs and settlement amounts, plus your risks of getting targeted because you have a high net worth, it’s clear that standard liability policies just aren’t enough.
Need an example? When you own multiple residences, have a fleet of luxury vehicles including boats and other watercrafts, and have a vacation property or two, you not only have a lot to protect with an insurance policy, but you also leave yourself open to thieves who want to target you. As a result, you need an umbrella insurance policy to protect your assets, just in case.
Things to Consider When Choosing an Umbrella Insurance Policy
When it comes to umbrella insurance policies, you have more flexibility with limits because these policies are designed differently. As a result, you need to spend a bit more time going over things before you choose the right amount. Things to consider include your future earning potential, your current liquid assets, real estate, investments, and more, because all of these thing are vulnerable to loss should you get sued and be found liable.
You also need to think about your overall risks. Do you have teenage drivers? They can sometimes play a little fast and loose on the road with their luxury cars. What about entertaining? Do you have frequent parties or fundraisers in your home? If so, you run the risk of having a guest slip and fall, injuring themselves, as well as the potential for accidentally giving some guests food poisoning.
Don’t forget about your employees. Whether you have some who are in your home daily or only hire workers for special parties, you run the risk of them injuring themselves on your property or breaking things during the course of the workday. An umbrella insurance policy will help protect you, your family, and your home in these situations.
Have Questions? Contact Charlotte Insurance
Want to learn more about the importance of having the right umbrella insurance policy to protect your luxury vehicles, properties, and more? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan you need.