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Individuals with a high net worth often have assets that require more insurance coverage than a traditional homeowners policy would provide. Not only their homes worth a lot more, but things like art collections or wine cellars also add additional value. Vehicles could be on the higher end, with many owning rare or classic cars. Because of the personal risks these individuals may face, high net worth individuals often take extra precautions through the services security agency Louisiana companies offer or through personal bodyguard services. Additionally, the investment into homeowners insurance is quite different from the average homeowner. If you are looking at purchasing high-value homeowners insurance, here are five things to know.
Many Homes Are Under-Insured
About 40% of homeowners will only take out enough insurance to cover the sale price of their home or to pay off the mortgage. These funds aren’t generally enough to cover a rebuild, let alone include the custom features or special construction that may have existed prior to the loss.
Policy Owners Receive Generous Terms
Because of the lifestyle often enjoyed by wealthy individuals, the high-value policies provide extremely generous living expenses. For some of the more expensive policies, there could be unlimited living expense coverage. These policies will generally include back-ups with drains and sewers, as well as extend coverage into areas of valuables and hobby collections.
Insurance Agents Can Ruin Your Coverage
Not all insurance companies or agents are experienced in writing policies for high-value homes. Though the coverage limits may look like it would be enough, the exclusions or limitations of the policy could ignore some of your more specific assets and needs. You must work with an agent and appraiser that knows how to assess the value of your lifestyle and dwelling in order to get comprehensive coverage.
When you have worked hard for your home and wealth, you want to protect it in any way possible. A risk management approach relies on security and good insurance.