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Insurance coverage tips for the HNW

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  • Insurance coverage tips for the HNW

    I listened to an interesting CE class yesterday on the above. The presenter obviously knew his stuff and crammed a lot into an hour. He spoke very fast and I tried to take good notes so I could pass along some of what I learned. This is not meant to be an article based upon my expertise, by any means; just sharing what I got out of the review with hopes you'll find something helpful. Here goes:

    • Water damage is the biggest source of claims for homeowners. Highly recommended to install a leak detection system, best time to do is when you're already having plumbing done. He recommended wssus.com and said you should get a credit for such on your HO ins.

    • When traveling internationally, get a threat assessment for specific cities you'll be visiting (a HNW carrier may provide at no charge). Never enter the room and let the door close behind you - always prop the door open until you've checked the room. Don't wear ostentatious clothing/jewelry (i.e. dress like an American). Never post upcoming trips on social media. Posting pictures of private locations (homes) from your trip is also a no-no as embedded geo-coding pins down the location.

    • Electronic defamation is probably not included in your policy. Be aware of what your family is posting online.

    • Domestic employees are a huge liability, especially when they become disgruntled. Always conduct a thorough background check. Your liability insurance should include defense costs and indemnification. Have worker's comp insurance, which will pick up beyond the medical insurance liability limit of your HO policy. Consider hiring through an employment agency.

    • For collectors - wine is not covered under normal HO policies other than spoilage. You should get regular appraisals of your collectibles. He recommend Pall Mall Art Advisors.

    • Most people don't pay attention to liability limits on auto policies, especially uninsured and underinsured limits. If you call your insurance agent to increase your deductible, they may automatically lower your uninsured and underinsured coverage.

    • Umbrella policies and Excess policies are two different kinds of policies and you need to know the difference. Sometimes "Umbrella" is used interchangeably with "Excess". Personal Excess responds to the terms and conditions of the "primary layer" of insurance. For example, most people don't have personal injury coverage on their HO policy (for defamation, for example). If you are sued on your HO for a personal injury attack and don't have the coverage, Umbrella will drop down and cover but Excess will not. (He said a lot more but I couldn't write it all down!)

    • There are only 3 big players in the HNW insuror market: Ace (Chubb operates under Ace), AIG (owns Lexington which is an excellent company for CA homeowners), and PURE. Chubb has a good annual travel insurance program. PURE has a great risk management checklist you should review (on their website). A 4th player is starting to consolidate as Nationwide Private Client Group.

    • When hiring an insuror, better in general to go with an independent agent over a captive agent. Always ask the advisor how he/she is being compensated from the policy sale. If they cannot give a straightfoward, sensible explanation, don't trust them. Also ask to see the detailed original proposal from the carrier, not just the more limited proposal from the independent agent.


    That's all I got. I realize a lot of this information is random, but there seemed to be enough value to justify sharing. If any of you insurance types lurking around want to add to or correct my notes, please jump in!
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

  • #2
    Curious. What definition was being used for HNW.

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    • #3




      Curious. What definition was being used for HNW.
      Click to expand...


      You know, he didn't say, but I would think $5M+. He named several services that were provided on a concierge basis for HNW policyholders.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #4
        Just found the handout that went along with the class - more advice and clarifies some issues.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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