A new survey has reveals that nearly two-thirds of high net worth homeowners have inadequate insurance, leaving huge numbers of individuals dangerously at risk.
Insurance giant Aviva carried out the research, which found many wealthy individuals were underinsured on their contents and buildings valuations. And worryingly, the level of underinsurance was quite significant: on average, homeowners were underinsured by 50%.
This would leave many homeowners very exposed should they need to replace goods and belongings, or even rebuild their property in the event of a serious calamity.
So how can you make sure you’re not underinsured?
High net worth individuals often have very complex insurance requirements, whether that’s due to owning expensive contents such as fine art and jewellery, or because of having multiple homes and international travel requirements.
To ensure you have the correct insurance in place, you’ll need to consider valuable individual pieces individually, instead of expecting them to be covered under a general policy. If you’re a frequent traveller, make sure your contents are covered on a global basis, as opposed to just when in the home. Likewise, if you spend a lot of time abroad away from your home, this may affect your insurance policy.
It’s also important to consider the difference between an item’s emotional value and its actual value—collectors of art, for example, often find their possessions value can fluctuate, even if the piece remains a firm favourite for them.
In terms of buildings, many wealthy homeowners have large estates with outbuildings, annexes and other facilities. These might fall outside of a regular home buildings policy, so make sure your individual circumstances are carefully accounted for.
Ultimately, a bespoke policy will always be the best bet for a high net worth homeowner. A broker like Enness Insurance can help. We understand your home is likely to be your most high value asset and, as such, protecting it appropriately is crucial. Likewise, dealing with the loss, theft or damage to your possessions can be extremely stressful, so our team of insurance brokers aim to take the hassle out of it, handling your case with care and discretion.