What is high net worth insurance?
Also known as HNW insurance, this is insurance designed for items of particular value, prestige or rarity.
It might refer to insurance of any item of special value, but is typically reserved for residential property and / or the contents within them (which might include, for example, collections of fine art, other collectibles or fine furniture and furnishings).
Typically, a mainstream home buildings and contents insurance will not offer enough cover for a HNW property or collection, and so specialist high net worth insurance is required.
Who is it designed for?
The term is often used to describe a person of recognised wealth – a so-called high net worth individual.
In common usage, there is no fixed or universally recognised definition of what makes a high net worth individual, but the term is certainly used by the financial services watchdog, the Financial Conduct Authority (FCA).
According to the FCA, a high net worth investor is an individual who both earns more than £100,000 a year and whose net assets (principally the home) are valued at more than £250,000.
What makes high net worth insurance specialist cover?
High net worth individuals and wealth they possess, sets them apart from the average individual with a more modest level of wealth.
The special position they occupy might be evidenced by the high value of the home and other properties they own, the car or cars they drive (typically, prestige, high performance or high end vehicles) and valuables such as rare collections or works of art.
This departure from the ordinary makes many regular insurers unable to extend the cover that is needed by high net worth individuals and their assets. Finding suitable insurance might therefore pose a problem, and that is why specialist high net worth insurance has been developed and provided by specialist insurance providers.
What are some examples of high net worth insurance?
It might be helpful to give two broad categories of insurance that might fall into the category of high net worth insurance:
High net worth property insurance
- this is probably the most common expression of the wealthy individual’s assets – the home occupied by that individual and his or her family;
- the home is likely to be out of the ordinary, of particular architectural interest or construction (a thatched home or a listed building for instance) and / or considerably more valuable than homes on any neighbouring estate;
- safeguarding this type of home demands particular attention to the risks to which the property is exposed and the inevitably high cost of repair or reinstatement in the event of a major insured incident;
- the high value home is most likely to require high net worth insurance;
High net worth contents insurance
- in similar ways, the possessions with which the high net worth individual surrounds him or herself, and the contents of the home they occupy, are likely to be beyond the reach of those of more modest wealth;
- those possessions might include expensive, antique furniture, pieces of fine art, rare collections, jewellery and cellars of fine wine;
- once again, standard insurers may shy away from extending cover for out of the ordinary, unique or high value contents;
- specialist high net worth insurance, therefore, is likely to provide the solution.
The high value of a home and its contents, therefore, may be one of the major indications of the need for and suitability of high net worth insurance.
How much does HNW insurance cost?
The cost of prestige property insurance will very much depend on the level of cover required. Because we specialise in offering HNW property insurance, this means we can find what we believe is a very cost-effective solution for your needs.
All our policies can be tailor made to provide the level of protection you need, whether for your home and / or collectables, jewellery or fine art etc., and come with a 5* Defaqto rating.