For many people, standard insurance products like home, auto, life, and personal umbrella insurance are adequate to protect their families and their assets. However, for high net-worth individuals there is much more to consider. There are millions of households in the U.S. with a net-worth of more than one million dollars, and almost one million of these households are in California, according to CNBC.com
People with a high net-worth need to look at insurance in a different way than others do. No longer are they trying just to insure a home or car, but instead they should be protecting their many assets through insurance. High net-worth individuals also have a different lifestyle that creates new risks that should be managed. Affluent individuals have unique property and casualty insurance needs due to their exposure to risk and to the types of assets they own. Individuals with money become targets when anything goes wrong. It is important not only to insure your property and other tangible assets, but also to protect your financial wealth. Here are some of the products and solutions that may help high net-worth individuals protect themselves and their assets.
Personal Umbrella Coverage
High net-worth individuals need a competitive personal umbrella insurance policy with a limit of at least one million dollars. In some cases, depending on your wealth, you may need liability limits of up to five million dollars. A personal umbrella is able to go over many different insurance policies, and help protect assets with defense coverage as well.
Domestic Employees Insurance
Individuals who employ cooks, housekeepers, nannies or others to work in their homes need to have insurance coverage for their employees. Having this kind of insurance helps protect you if your employee sues you for damages. It is also important to carry workers’ compensation insurance on your staff. This policy may also cover certain medical expenses that may be paid to the employee, and can help to replace any wages lost.
Coverage For Wine
Many high net-worth people have wine collections. A standard homeowner’s policy may not be adequate to respond to a loss. Wine insurance can cover the entire dollar amount of the wine with a limit for each bottle.
Fine Art Insurance And Other Collections
Fine art insurance can cover the full market value, or appraised value, on any art you own. Most standard homeowner’s insurance policies have limitations on the amount of coverage offered. Fine art insurance also covers the art when it is purchased; even it is away from your home. Here are other items you may need to insure.
- Precious jewelry
- Fine art
- Musical instruments
- Rare postage stamps and coins
- Sports memorabilia
- Fine china and silverware
- High-end electronics
- Other antiques and collectibles
Property Coverage for High-End Homes
High-end homes often have unique construction that requires special property insurance coverage. Custom construction drives the replacement cost higher. It is very important to have full replacement coverage that addresses all the custom and unique types of property in the home.
Coverage for Home-Based Businesses
Many high net-worth individuals operate home-based businesses. A standard homeowner’s insurance policy will not cover this risk. A commercial insurance policy is needed to protect the risks of operating a home-based business adequately.
Serving on For-Profit and Non-Profit Boards
Many high net-worth individuals serve on for-profit and non-profit boards. Some of these positions have indemnification and insurance included with serving on the board. However, some do not adequately protect the individual, and a separate policy is needed.
Oakwood is involved with numerous local, state and national insurance associations and communities. The agency encourages employees to devote time to these endeavors. Oakwood’s approach is one of total risk management, encompassing the areas of property & liability insurance, automotive insurance, worker’s compensation, professional liability, individual or group accident & health insurance, life insurance, contract surety bonds, and personal insurance. Oakwood provides an in-depth range of insurance products and services to assist in securing our clients’ future. We are an agency committed to excellence, founded on the principle of integrity.
The best way to solve a problem is to first understand it. To understand a problem involves asking questions, reviewing agreements, and visiting the facility or business. We believe that a professional agent must do more that merely issue insurance on the client’s behalf. Besides determining and placing proper coverage with reputable insurance companies, we seek to educate our clients on coverage and to reduce, or transfer risk to the insuring company, and working closely with management team to protect and preserve assets.