Discover what the best insurance companies for high net worth individuals are. The personal insurance needs of high net-worth families differ from those of most people - as they have so much more to lose - from both a liability & property standpoint."
Best Insurance Companies For High Net Worth Individuals
Whether you are an executive, you have built your own business from the ground up, or you have inherited a large amount of money, if you have a high net-worth, you know that you are fortunate enough to have a lot of options available to you.
However, though many people assume that people who have a lot of money have the "easy life", there are many risks and challenges that the wealthy can face - one of them being choosing an insurance provider.
While there are so many insurance companies out there and you could certainly choose to work with any of them, you want to ensure that you and your net-worth are well protected. Unfortunately, there are not a lot of insurance companies that specialize and understand the personal insurance needs of high net worth families.
A large percentage of high net worth families are underinsured and/or they have their insurance with a company who does not offer the limits of protection needed and the ability to properly value expensive properties. Over the last few decades, the size of liability judgements and frequency of lawsuits have been increasing.
So which insurance companies know what they are doing and will provide you and your loved ones with the proper coverage in the event of a property loss or a liability claim? Keep on reading to find out which companies offer the best home, auto, and life insurance coverage for individuals who have a high net-worth.
The Best Homeowners Insurance For High Net-Worth Families
The last thing you want is for someone to slip and fall on your property and file a huge liability claim against you and not have the proper coverage, for example. So, what insurance providers offer the best homeowners insurance for someone of your financial status?
Carriers like AIG Insurance, The Chubb Group, Pure Insurance and The Horton Group offer outstanding homeowners insurance policies for high net-worth individuals. Some of the benefits of having the above mentioned insurance carriers cover your home an vacation homes include the following:
- Complimentary Appraisals - With these insurance carriers, there is a very good chance that you will receive a complimentary appraisal of your home in order to ensure that the right estimate for replacement cost is used when your home is insured.
- Extended Replacement Cost - In the event that your home is completely destroyed by an act of nature, often times, the amount offered by an insurance policy to replace your home won't be enough. Extended replacement insurance ensures that your carrier will cover any additional expenses above your homeowner's policy limit.
- Ordinance and Law coverage - The cost to bring your home up to code is not often provided with a standard homeowners insurance policy, which may only offer 10% of the dwelling insurance amount, and must be covered separately by ordinance and law coverage. Local building codes change frequently, so in the event of a large loss like a fire, when the house is rebuilt it will need to be rebuilt to current code standards.
- Excess Liability Add On - If you're found at fault for an injury on your property, then the other party may come after your personal assets. Having an excess liability or umbrella policy can help pay for legal fees and any damage awards so you don't have to sell your assets to pay the judgement.
Most families do not start out as high net worth unless they had an inheritance. So like most people the buy their insurance from GEICO, Progressive, State Farm, Allstate, Farmers & Nationwide. The problem starts when their assets, properties and wealth starts to outgrow these companies - and they don't update their policies to fit their growing needs.
Most of the standard insurance companies do not have the right products or coverage amounts to fit the needs of a high net worth households. For example; On their homeowners polices the replacement cost estimators are meant for homes not exceeding $500,000 in value. So if they insure a home where the replacement cost is higher, the property is usually underinsured and the premiums are typically higher. These property policies don't offer broad enough coverage, and believe it or not - typically cost as much or more than a proper high net-worth policy.
It is common to find significant coverage gaps when a high value home or family is not protected by a company that specializes in wealthy family protection. The main reason for this is that standard insurance companies do not have specialized high net worth insurance products, including underwriters and claims adjusters who specialize in high value property.
Best Auto Insurance Providers For High Networth Individuals
Whether you own a few or an entire fleet of high-value vehicles, in the event that any of them are damaged in an accident or as a result of a storm or an act of vandalism, you want to make sure that the damages are fully covered to either repair or replace the vehicle.
There are several insurance carriers that offer comprehensive auto insurance coverage for high net worth individuals. Among the best include AIG Insurance, ACE Group, and The Chubb Group. Some of the benefits these carriers offer wealthy people include:
- Rental car coverage worldwide. If you need coverage for a rental throughout the US or abroad, these carriers will extend that coverage.
- Agreed value coverage. You'll find out the exact settlement value of your vehicle as soon as you obtain your insurance coverage.
- Original equipment manufacturer parts. If your vehicle needs repairs, these providers will cover the cost of parts from the original manufacturer.
- Umbrella - If you're found at fault for causing an injury when driving then the other party may come after your personal assets. Having an excess liability or umbrella policy can help pay for any pain and suffering or medical bills if you are sued.
The Best Life Insurance For High Net Worth Individuals
In the event that you pass away, you want to ensure that your family is provided for, which is why having a comprehensive life insurance policy is so important. Life insurance can help transfer your wealth upon your passing. It can also be used to pay off your mortgage, send your children to college, pay off loans and estate taxes - so that your family isn't forced to sell the assets you built up over your lifetime to pay debts and tax bills.
Some of the best life insurance companies for wealth people include MassMutual, Prudential, and Pacific Life. These carriers provide life insurance policies with a high death benefit and will make sure that the process of receiving coverage is seamless and as easy as possible.
Best Insurance Companies For High Net Worth Individuals - The Bottom Line
We hope this article on best insurance companies for high net worth individuals has been informative. If you are part of a high net-worth family and you are shopping around for auto, home, vacation home, valuables and/or life insurance, the companies mentioned above are decent options to consider, as they will ensure that your assets are well protected. Top high net worth insurance companies, high net worth insurance carriers, high net worth insurance market share, high net worth insurance brokers, insurance for high networth individuals, high net worth homeowners insurance & high net worth home insurance.
High Net Worth Insurance Information
EK Insurance advises our affluent clients on what coverage options are available to them. Please check out more of our articles on insurance choices for wealthy families: