Most insurance agents realize that there are affluent families
who have failed to adjust their insurance programs to protect their
assets. They often choose their insurance agent and carrier early on
while they are still building their wealth. They become complacent, and
don't really think about the need for a valuable high net worth
insurance policy, rarely taking a close look at those choices made so
long ago.
They continue to place their home, auto, watercraft, valuable collections, and umbrella liability insurance with the same carriers year after year, not realizing that they are not specifically structured to meet their needs. This is a problem that may remain unnoticed until their house burns down, or they get sued, at a cost of millions of dollars.
Fortunately by considering seven simple questions from a survey of 600 independent insurance advisors designed to identify the key areas where families are likely under-insured or missing savings opportunities, they can understand the need to invest time in re-examining their current situation.
If the answer is "no" to any of the questions listed below, there is the likelihood of risk. Those persons should strongly consider a consultation with an independent insurance agent or broker experienced in dealing with affluent families.
Ways to tell if a person is under-insured or over paying
1. Ever considered purchasing umbrella liability coverage, or chosen a coverage amount that matches present net worth and future employment income stream?
2. Will current homeowners policy pay to rebuild the home with similar quality materials and craftsmanship no matter how much it costs?
3. Has an insurance agent discussed any recent expansions or upgrades to the home?
4. Is there a significant amount of artwork, oriental rugs, antiques, and other collectibles owned that are insured with a valuables policy and reviewed to account for any change in their value from year to year?
5. Does the insured currently have at least $1 million in uninsured/under-insured liability protection, and does it apply to more than vehicular accidents?
6. Has employment practices liability insurance been purchased for employed household staff such as a nanny, caretaker, or chef? How about workers compensation for domestic help?
7. Does the insured presently serve as an unpaid board member of a not-for-profit organization and need directors & officers liability coverage? (The organization's insurance program may not fully protect certain individuals from liability lawsuits brought against it.)
In addition to reviewing whether there is sufficient coverage, it might also be a good idea to consider raising homeowners and auto policy deductibles to help reduce the cost of this insurance. Other factors include consolidating homeowners, valuable collections, auto, watercraft, and umbrella liability policies with a carrier that offers a package discount. High net worth insurance offers a variety of choices. Discuss with an insurance agent all the safety and loss prevention devices in the home and any automobiles, which may help to increase savings on a policy as well.
They continue to place their home, auto, watercraft, valuable collections, and umbrella liability insurance with the same carriers year after year, not realizing that they are not specifically structured to meet their needs. This is a problem that may remain unnoticed until their house burns down, or they get sued, at a cost of millions of dollars.
Fortunately by considering seven simple questions from a survey of 600 independent insurance advisors designed to identify the key areas where families are likely under-insured or missing savings opportunities, they can understand the need to invest time in re-examining their current situation.
If the answer is "no" to any of the questions listed below, there is the likelihood of risk. Those persons should strongly consider a consultation with an independent insurance agent or broker experienced in dealing with affluent families.
Ways to tell if a person is under-insured or over paying
1. Ever considered purchasing umbrella liability coverage, or chosen a coverage amount that matches present net worth and future employment income stream?
2. Will current homeowners policy pay to rebuild the home with similar quality materials and craftsmanship no matter how much it costs?
3. Has an insurance agent discussed any recent expansions or upgrades to the home?
4. Is there a significant amount of artwork, oriental rugs, antiques, and other collectibles owned that are insured with a valuables policy and reviewed to account for any change in their value from year to year?
5. Does the insured currently have at least $1 million in uninsured/under-insured liability protection, and does it apply to more than vehicular accidents?
6. Has employment practices liability insurance been purchased for employed household staff such as a nanny, caretaker, or chef? How about workers compensation for domestic help?
7. Does the insured presently serve as an unpaid board member of a not-for-profit organization and need directors & officers liability coverage? (The organization's insurance program may not fully protect certain individuals from liability lawsuits brought against it.)
In addition to reviewing whether there is sufficient coverage, it might also be a good idea to consider raising homeowners and auto policy deductibles to help reduce the cost of this insurance. Other factors include consolidating homeowners, valuable collections, auto, watercraft, and umbrella liability policies with a carrier that offers a package discount. High net worth insurance offers a variety of choices. Discuss with an insurance agent all the safety and loss prevention devices in the home and any automobiles, which may help to increase savings on a policy as well.
No comments:
Post a Comment