High net worth insurance: what is it and who needs it?

What is high net worth insurance?

High net worth insurance is a specialised form of coverage designed for individuals with significant assets that require more protection than standard policies offer. It typically covers luxury homes, fine art, high-end jewellery, yachts, and rare collectables. 

The key benefit of high net worth insurance products is they provide higher coverage limits, flexible terms, and tailored protection, ensuring that these valuable assets are fully insured.

These policies often use an agreed value approach, meaning your assets are insured for their full appraised worth without depreciation.

High net worth insurance also avoids restrictive conditions and clauses commonly found in standard policies, offering more comprehensive and adaptable coverage.

Who needs high net worth insurance?

High net worth insurance is essential for individuals whose assets exceed the limits of standard policies.

If you own a luxury home, valuable jewellery, fine art, or rare collectables, high net worth insurance may be necessary to ensure these items are fully protected.

Premiums for high net worth insurance are typically substantially higher than standard insurance, often running into thousands of pounds annually, depending on the assets covered.

Most policies have a minimum value requirement, such as homes worth over £1 million or collections exceeding a certain threshold.

But do high net worth individuals need life insurance? Absolutely.

Life insurance is crucial for estate planning, helping cover estate taxes and debts without needing to sell off valuable assets. It also secures generational wealth, providing financial protection for your heirs.

When is standard insurance not enough?

Standard insurance often has coverage limits that may not fully protect high-value possessions. For example, if your home is worth significantly more than a standard home or you own rare items like fine art or vintage cars, standard home or contents insurance may fall short.

High net worth insurance ensures that all aspects of your possessions are adequately covered, with tailored solutions that meet your needs.

What are the different types of high net worth insurance coverage?

High net worth insurance can cover a wide range of assets, from your home to your car and even your health.

Car insurance

High net worth car insurance is tailored to protect luxury or vintage vehicles, offering higher limits for repairs and replacement costs. This type of coverage also accounts for rare parts and specialised repairs that typical policies wouldn’t cover.

Home insurance

For luxury properties, high net worth home insurance provides protection that includes flexible rebuilding costs, higher limits for damage claims, and coverage for custom architectural features that are often excluded from standard policies.

Contents insurance

High-value items like art, antiques, and expensive electronics are protected under high net worth insurance products. Policies are customisable, ensuring each valuable item is insured for its true worth.

Jewellery and watches insurance

When it comes to fine jewellery and luxury watches, high net worth insurance offers specific coverage.

These policies often require professional appraisals to ensure accurate protection. For high-value pieces, this specialised insurance ensures you’re not left short if the worst happens.

Other coverage

In addition to homes and cars, high net worth insurance covers yachts, private jets, and personal liability.

For those with particular medical needs or seeking access to premium healthcare options, high net worth health insurance can provide comprehensive medical coverage that includes private hospitals, specialised care, and worldwide health services. 

What are the advantages of high net worth insurance?

High net worth insurance offers numerous benefits, including: 

Higher coverage limits

The most significant advantage of high net worth insurance is its higher claim limits, ensuring your valuable assets are fully protected.

Whether it’s a luxury home or a rare piece of art, high net worth insurance policies offer the security of knowing you won’t face out-of-pocket costs for a replacement.

Personalised services

Many high net worth insurance brokers offer a personalised service, including dedicated account managers and tailored risk assessments. This bespoke approach means you receive customised protection that reflects your unique needs.

Worldwide coverage

Some high-net-worth policies offer worldwide coverage for those who travel frequently or own property abroad, ensuring their assets are protected no matter where they are.

Risk management services

Some providers offer risk management services beyond basic insurance. These could include security advice or recommendations to protect your home, car, or other high-value assets, minimising risks.

What are the disadvantages of high net worth insurance?

There are also downsides to high net worth insurance.

These include:

Higher premium costs

High net worth insurance often comes with higher premiums. The specialised nature of the coverage and higher claim limits naturally lead to increased costs compared to standard policies.

Customisation complexities

While these policies' flexibility is a benefit, it can also create complexity. Tailoring a policy to fit specific needs can be time-consuming and may require ongoing adjustments as assets change.

Limited availability of insurers

Not all insurers offer high net worth insurance policies, meaning there are fewer providers. This limited availability can make finding the right policy more challenging.

Higher deductibles

Another potential downside is higher deductibles, particularly for rare or hard-to-replace items. While this can help lower premiums, it may leave you with a larger financial burden if you need to file a claim.

Can using a high net worth insurance broker save you money?

Working with high net worth insurance brokers can offer financial advantages.

These brokers have specialised knowledge and access to exclusive policies that might not be available to the general market.

They can help negotiate better rates or find discounts by bundling multiple assets under one policy. Their expertise can also ensure you’re not over-insured or under-insured, potentially saving you money in the long run.

How do I choose the best high net worth insurance for me?

Choosing the right high net worth insurance starts with understanding your specific needs. 

It’s always a good idea to consult a broker who specialises in these policies. They can help you assess your assets, recommend suitable coverage, and find a policy that fits your lifestyle. 

Consider factors like worldwide coverage, risk management services, and claim limits to ensure the protection of your most valuable assets.

Get expert financial advice

High net worth insurance provides essential, tailored coverage for individuals with valuable assets that standard policies can't fully protect.

From luxury homes to rare collectables and private jets, these specialised policies offer the comprehensive protection you need.

Working with experienced high net worth insurance brokers ensures your assets are safeguarded with customised solutions, offering peace of mind and long-term financial security.

Let Unbiased match you with a professional financial adviser to help secure the right high net worth insurance tailored to your unique needs.