What Is High Net Worth Insurance

What is a “High Net Worth” client?

Generally speaking, it’s a client who needs a household policy to cover at least £150,000 of general contents including antiques and fine art. The entry level can be lower if the client is a young professional who will become a high net worth client in the coming years.

These customers are often asset rich, but time poor. They don’t have the time, energy or inclination to spend hours on arranging home insurance. They want value for money, but demand the peace of mind of knowing that claims will be dealt with quickly, simply and fairly. In short, they want high levels of personal service, help and advice, and that’s where you come in.

What cover would normally be included?

• Contents – all contents, including fine art. “Fine art” includes antique furniture, paintings, sculptures, etc, but not jewellery (which is covered under a separate section specifically designed to cover the client’s precious items).
• Buildings - can also be added, but need not be. It is not usual to cover the building without the contents - with this type of policy, they go hand in hand.
• Bespoke Valuables Cover - is usually provided on a worldwide basis, and normally on a “warranty free” basis (see below).
• Other - policies can also include annual travel, holiday homes in the UK or abroad, and often motor insurance as well.

What’s the difference between “High Value Insurance” and “High Net Worth”?

• High Value Insurance - is often a standard household policy that’s been modified to allow for a larger risk to be insured. However, the policy wording was designed for a standard risk, and will therefore contain exclusions and warranties. For example, many policies will include a clause which states that if a security alarm isn’t operative and the property is broken into, cover may be excluded or a larger excess applied. Likewise, if key operated window locks aren’t being used, or if a valuable item isn’t in a safe, cover may be restricted or not operative.
• High Net Worth Insurance – this type of policy will normally be ‘warranty free’. This means that the normal clauses in relation to the use of alarms, locks or safes would not be present. In addition, valuable items can be insured on an “agreed value” basis in advance, meaning that claims can be resolved very quickly, as the insurers don’t need to discuss the value of items at the claims stage. The claims teams understand the need for a simple, swift and sensible settlement, and the loss adjusters often have authority to settle claims on the spot.

How do I get a quote?

Because of the bespoke nature of the cover, it’s not possible to provide an online quote & buy system for this type of policy. Each risk needs to be individually discussed with the insurers to provider the most appropriate cover for the customer.

The insurers prefer to base their assessments as much on the individual rather than the property, so they want to understand the client’s attitude towards risk. The client’s honesty, integrity and trustworthiness is as important as the risk information. If you have known the client for many years, and can vouch for them, that will carry enormous weight.

In order to quote, we’ll need a risk profile of the client and the property. This is done with the use of a dedicated HNW Fact-Find form . If you want to maintain the client contact, either complete this and return it to us, or ring us and we’ll complete it with you.

Can I refer clients to your specialist staff?

Yes. Use our referral service and we will speak to the client on your behalf.

What insurers do you use?

This is a highly specialised market, and has dedicated providers. Our lead provider is Hiscox, backed up by a number of other specialist insurers and markets, including Chubb, Aviva and Sterling.

What makes Hiscox special?

Hiscox is an international specialist insurer and underwrite a diverse range of personal and commercial insurance risks. They have a long history, and great expertise, in providing specialist home insurance cover, and are widely considered to be one of the leading insurers in the High Net Worth market.

Click here for more information on the Hiscox offering.