Everything You Need to Know About High Net Worth Insurance

by | Jul 7, 2022 | High Net Worth Program

High net worth insurance, also called high-value insurance, is designed to protect wealthy people’s property, family, and lifestyle. This means that anyone who owns extraordinary homes, cars, jewelry, fine art, and other material assets will need to obtain a high net worth insurance policy.

As your business professional and private interest grow, so do your risks. Protecting your valuables, especially the expensive kind, is extremely important. If you suddenly find yourself dealing with complicated financial protection that requires an expert’s help, contact TSL Insurance Group to answer all your questions.

What is a High Net Worth Individual?

HNWI, or a high net worth individual, is frequently used to describe a person or a household with substantial wealth. The threshold for a high net worth individual is understood to include liquid assets only excluding the primary residence, collectibles, or durable goods.

Classifications of Wealth:

  • High net worth individual (HNWI)
  • Very high net worth individuals (VHNWI)
  • Ultra-high net worth individuals (UHNWI)

What is the Difference Between High Net Worth and Ultra-high Net Worth?

High net worth individuals are people or households who own liquid assets valued between $1 million and $5 million. Meanwhile, ultra-high net worth individuals are people or households who own more than 30 million in liquid assets. Another classification that falls between HNWI and UHNWI is known as very high net worth.

This category consists of people or households who hold liquid assets valued between $5 million and $30 million. Wealthy people in these classifications require additional services from financial advisors and wealth managers.

The more liquid assets held by an individual or household, the more appealing the net worth becomes.

What Does High Net Worth Insurance Cover?

High net worth insurance is a customized policy type that protects people from home insurance to travel insurance and much more.

HNWI recognizes that people with large assets have special needs. It provides expanded coverage limits and offers several benefits and services not typically found in a standard home insurance policy.

High Net Worth Insurance Can Cover:

  • High-valued homes, renters, or condo
  • Collections
  • Jewelry
  • Art
  • Luxury automobiles, motorcycles, collector cars, RVs
  • Yachts and boats
  • Business property

Many insurance providers are not equipped to address complex risk management needs. TSL Insurance Group is an independent insurance agency in Lafayette, Franklin, Baton Rouge, Lutcher, and Abbeville, LA, that is qualified to assist with unique insurance needs especially because there is much more to protect when it comes to wealth management.

We are dedicated to working with successful families and high net worth individuals to find a comprehensive policy package that protects both the home and the family’s lifestyle.

Things to Consider When Choosing Your High Net Worth Coverage

  • Find a specialist. Most insurers are not trained to deal with complex risk management needs. Consulting with an independent insurance agency, such as TSL Insurance Group, can help in finding a custom policy that you may not have direct access to.
  • Financial stability. Adequate coverage gives you the option to rebuild or receive a cash settlement if a catastrophic event such as a wildfire or hurricane destroys the home.
  • Consolidation. Over time, significant purchases are made that need to be insured. Rather than insuring the purchases in a different way, which is a common approach but more expensive, consolidating them into one independent insurance agency and carrier helps avoid coverage gaps.
  • Replacement cost. If your home was damaged and needed to be rebuilt, the cost for custom properties usually holds strong or increases over time.
  • Collections coverage. A homeowner’s policy generally caps limits on content coverage where items may depreciate. So, insuring such things as jewelry, wine, art, and other collectibles appropriately means a more flexible protection plan.
  • Read the fine print of what is covered and what is not. A seasoned high net worth carrier will be more likely to communicate the special circumstances that come with wealth.

TSL Insurance Group is the insurance professionals who specialize in providing expert guidance and customized risk management solutions to high-net-worth individuals directly, through family offices, and personal business managers. Contact our well-trained insurance agent in one of our five locations near you: Lafayette, Abbeville, Baton Rouge, Lutcher, or Franklin

As a trusted insurance advisor, you can count on us to help you understand more of the complex risk and issues of high-net-worth insurance so you can properly protect your assets. Let TSL Insurance Group protect your future today.