Affluent individuals are more at risk for losses than the average American, yet they frequently hold only standard personal insurance policies. While such policies are adequate for average families, they do not cover the sizable risks associated with assets like a multi-million dollar home, a luxury yacht or a priceless art collection.
Many people underestimate the value of their possessions. They simply haven't paused to consider the actual value of their custom sports car and their jewelry. As a result, their personal insurance coverage is insufficient to protect them in the event of damage or loss.
Get Adequate Liability Insurance
Families who are well-off face additional dangers. They are far more likely to get sued if they are involved in an accident or if another party believes that the wealthy individual's negligence injured them. Without adequate personal insurance coverage, a well-to-do person may be putting their bank account and their assets at risk.
Liability may be the single greatest danger for the affluent person. If such an individual only has an insurance policy that's suitable for the average family, they don't have the kind of liability coverage that they need to cover their assets. When someone is suing a wealthy person for damages or injuries, the sky may be the limit. This means that a special policy may be required.
Wealthy people have worked hard to achieve their goals and financial independence. Despite their dedication and intelligence, it may not occur to them that they are not adequately insured. For instance, a nine million dollar condominium in Manhattan usually cannot be covered by the typical renter’s or homeowner’s policy. This is because such a policy doesn't have adequate coverage for the inside structure, an essential component for a property of this value.
Covering a Yacht
Many well-to-do families love to escape to the ocean when it's time to get away from it all. However, if that yacht is not properly insured, a cruise can quickly become a nightmare. People often make the mistake of not treating their yacht as a floating home. If there's a crew, then it's necessary to consider several different forms of protection such as workers' compensation, disability, salary and housing insurance policies.
Additionally, many yachts have smaller craft, helicopters and expensive toys on board. Any insurance policy that covers the yacht also must have sufficient coverage for all of the extras. Without this coverage, recovering from a loss is far more difficult and expensive.
Protecting Valuable Cars
A car collection is another asset that many people do not adequately insure. Whether you have one extra-special ride or a multi-car garage full of one-of-a-kind automobiles, it's essential that you understand the value of the collection and have adequate insurance coverage. If you drive any of those cars on the road, then it's also necessary to have excess liability coverage if you get into an accident.
A homeowners' policy is a necessity for any wealthy person. However, it's essential to have a policy that's big enough to cover the actual value of the property. These policies frequently cover theft or damage from fires, but the loss limits usually do not cover the full value of the home's contents. Additional coverage for jewelry, works of art, wine collections and even racehorses is critical. A high-net-worth policy may cover all of the policy holder's homes and their possessions no matter where they are stored. That's the kind of peace of mind that anyone can appreciate.
NXG Insurance Group has extensive experience working with wealthy individuals to protect their assets. Contact us to find the right personal insurance coverage.