Trends in Property and Liability Insurance for High-Net-Worth Households
This week, we hosted a client webinar “Insurance Insights and Trends: The Price of Peace of Mind” focused on the needs of high-net-worth households. Our featured speakers were executives from high-net-worth insurers Chubb and Pure and insurance brokerage Marsh McLennan. Below are some of the key takeaways from the panelist presentations:
- The insurance market, like many others, is experiencing a surge in demand and dwindling supply. Therefore, it is harder to find coverage, and it will be more expensive once you do find it. If you can cover a claim yourself (self-insure to a certain extent), it may be more economical in the long run to do so.
- Climate change is becoming a major factor in what insurance companies will cover and where. High-net-worth insurers can help policyholders better prepare homes for natural disasters, including wildfires, earthquakes, flooding, hurricanes, etc.
- Many high-end properties aren’t adequately insured. Replacement costs have risen substantially in the past five years for a variety of reasons. Some of the current shortages in construction materials and labor may subside, but it’s highly advised that property owners get an up-to-date estimate on replacement value and insure for that.
- High-value items – jewelry, art, collectibles, etc. – should be insured separately through a home insurance policy rider that applies worldwide and has a market value extension.
- Most home insurance claims are not for fire nor natural disasters; they are for non-flood water damage, caused by things like long-lasting leaks, faulty appliances, or poor drainage.
- Personal liability insurance is a must for high-net-worth households, with limits much higher than $5 million, depending on specific risks. While the vast majority of claims are due to auto accidents, there are many other potential sources of claims including accidents on owned property (planes, helicopters as well as houses) and while serving as a board member.
VIEW FULL WEBINAR HERE. Password: 8VfvpXab