subject: Considering The Need For High Net Worth Insurance [print this page] Recent studies show that the majority of people buying high net worth Insurance undervalue their homes and the contents within, leaving them short in the event of a claim.
This type of insurance was created for people with individual home coverage needs, which are not covered with a regular home insurance policy.
Many people believe that they are well covered for all of their homes valuables, however if the contents of a home is worth over $75,000 a person may qualify for this more specialized insurance. By being underinsured, the contents of the home will not be insured for the full cost of replacement and it is unlikely the insurer will agree to pay the full amount of the claim.
A homeowners valuables need adequate protecting, and anyone having a number of high value items should look to utilize high net worth home insurance to suitably protect them. Many people assume that their contents is not considered high value and that theyll be perfectly covered for everything they own. It is important to consider all the different aspects of the contents and have them correctly valued to ensure that the proper coverage is in place.
Contents that homeowners often undervalue when considering their worth:
Family heirlooms
Inherited items (such as antiques, jewelry)
High-priced art
Antique or expensive furniture
However there are even less obvious items that are forgotten about and not taken into consideration, objects that are often stacked away in wardrobes such as designer clothes, shoes and expensive handbags, like Louis Vitton, Prada, Gucci, and Chanel. Most people remember the value of their watches and jewelry but forget about the other apparel that they may have bought over previous years or been given as a present.
Underinsurance a main cause of concern
Many policies differ and as many as 67% of high net worth homeowners are likely to be incorrect regarding the value of their home contents, leaving their possessions underinsured. And, underinsurance can cause serious problems when it comes to making a claim. Insurers may not pay out the full cost to replace the lost or repair damaged items, which means high net worth homeowners can end up paying considerably out of their own pockets.
Should the unthinkable happen, and these items become lost, damaged or stolen, some will find that they are not fully covered by their current policy. Therefore, it is vital to take stock of possessions and seek a professional appraisal regularly to prevent the risk of underinsurance.
by: MariaT.Barber
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