A guide to High Net Worth Insurance

All you need to know about buying high net worth insurance

Photo by Vaibhav Nagare on Unsplash

Photo by Vaibhav Nagare on Unsplash

High Net worth Insurance provider, Whitegates Private Clients provide a comprehensive guide to everything you need to know about high net worth insurance. Find out more about Whitegates Private Clients here.

What is high net worth insurance? And what does it cover?

High Net Worth Insurance is for people that own high value assets. This can range from high end jewellery to a stable of super cars, and most things in between.

Why should I buy it?

If you own a property or cars with a high value, you should have a bespoke high net worth policy to cover them. Standard home and motor policies aren’t sufficient. All insurance policies have inner limits, and these limits are far superior on a high net worth, compared to a standard, insurance policy. Sections such as trace & access and alternative accommodation are usually the biggest ones to stand out.

Trace and access cover is specifically to find a leak, such as a leaking water pipe. High net worth policies usually cover you up to the building sum insured, whereas standard insurance policies can be capped as low as £1,000. This would leave you massively out of pocket.

A high net worth motor policy would give you comprehensive cover for driving other cars, as opposed to just third party on a standard policy, and agreed value for your vehicles, so if the car is a total loss you know what you’ll get for it, not having to argue the current market value, as you’d have to do on a standard motor policy. And most importantly perhaps, with either home or motor cover, you’d receive an amazing service level when you need to claim.

Top 5 frequently asked questions - with answers:

How often should I get my jewellery valued?

We recommend every 2 years, and make sure you use a reputable jeweller, one that is part of a regulatory body. Your broker will be able to help recommend someone.

How do I know what my building sum insured should be?

This is actually getting more tricky. Historically, surveyors would include this on their survey reports, but this doesn’t seem to be happening too much anymore. There are various methods, but the most accurate is to get the property surveyed. Thankfully, a lot of the high net worth insurers will include this free of charge within their cover. And for those insurers that don’t include it, we have access to a RICS approved firm of surveyors who can accurately calculate to rebuild sum from their desktop.

I have lots of cars, and each one needs a separate no claims bonus – is that right?

With a standard provider; yes! You do need a separate no claims bonus for each vehicle. So if you buy a new Range Rover, you may have to pay a lot more if you don’t have any no claims bonus to allocate to it. However, high net worth motor policies are different. The policies are looked at by an underwriter, not a computer, so if you’ve not made any claims, then the underwriter will allocate you a discount for each vehicle you own.

Can I add my holiday home to my high net worth policy?

Yes you can. This means you will have the same renewal date as the main policy, you’ll receive the same amazing claims service and there won’t be any grey areas between which insurer is covering what.

I’m having some building work done – do I need to let my provider know?

Yes, let them know, just in case. If you have a standard insurance policy, they probably need to know whatever it is you’re doing to the property. With a high net worth policy, you don’t generally need to notify them of building works unless the contract value is going to exceed £100,000. Again, let your broker know anyway, just in case!

A tip for buying high net worth insurance

The most important tip is: get yourself a great broker, and get to know them well. The better your relationship with your broker, the better. Don’t hesitate to let them know the information they’re requesting, and always be open and honest. And don’t necessarily settle for the cheapest policy. As with most things in life, you get what you pay for. If an insurer is cheap, then they have to cut corners somewhere, and it’s most likely you’ll find out where when you go to make a claim. If you’ve spent a lot of money on your prized possessions, it makes sense to spend a bit on protecting them properly too.

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Regulatory Disclaimer:

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