Plan B: Making sure you have appropriate non-life insurance

Written by Tor Flonaes

It is said that insurance has two costs: One before things go wrong and one afterwards. In other words, are you appropriately insured and will the insurance pay out or will you be caught out by some opaque policy wording? A standard home insurance policy might not fully protect the value of your high-end property or belongings, unlike a specialised high net worth policy. As one accumulates more valuable possessions, perhaps on a global basis, having a comprehensive policy that is reviewed by an expert becomes more important.

Also known as high-value home insurance, a high-net-worth insurance policy typically provides comprehensive coverage for your high-value assets. So, whether you own one or more homes, cars, antiques, art, jewellery or other valuable items, you can get correct coverage for your home and contents.

MASECO can introduce you to a number of FCA authorised insurance brokers, that have experience in the provision of high net worth insurance protection.

Who needs high net worth insurance?

High net worth insurance caters to people who own valuable homes and high-ticket items. They will typically own property valued at over £1.5m and their home’s contents will be worth at least £150,000.

High-value insurance policies can provide significantly greater coverage and limits than standard home insurance. They may also offer additional benefits, such as home emergency cover, legal expenses, identity theft, cyber protection as well as direct access to a dedicated insurance broker that can help make sure you get the appropriate cover as well as help if something goes wrong and you need the insurance to pay out.;

What high net worth insurance can cover

High net worth insurance typically goes beyond the traditional one-size-fits-all household policies to offer higher limits and broader cover. For example it can cover:

• High-value homes
• UK and overseas property
• Second homes
• Yachts and boats
• Designer clothes
• High-end technology and gadgets
• Jewellery and watches
• Antiques
• Collections (memorabilia, fine art, wine)
• Collectables (stamps, coins)
• Gold and silver
• Car collections

A bespoke high-value insurance solution can provide you with the right level of cover to protect your home and high-value possessions against damage and loss, whether you keep your belongings at home or they travel with you.

This type of insurance can include:

• Unlimited protection following a rebuild survey (at no extra cost to you)
• Identity theft and cyber protection
• Legal expenses
• Home emergency protection
• Replacement or cash
• Accidental damage and loss
• Global protection
• Family protection
• University cover
• Warranty-free options

How to choose the right high-net-worth insurer

If you own one or more items of considerably high value, you may need high net worth insurance. Whether you own one or more luxury homes, high-end cars, collectable art or antiques, or have a valuable jewellery collection, it can ensure that your homes and belongings are comprehensively covered against loss or damage.

This type of insurance also typically offers additional important benefits, such as higher coverage limits, a concierge claims service, legal fees and emergency repairs all wrapped into one policy. So, whether you’re looking to protect your home, cover your belongings when you travel, or be able to manage unforeseen emergencies with confidence, high net worth insurance offers the peace of mind that your investments are protected.

Step 1 – Start by taking stock

Start by taking stock of all your valuable assets, including property, art collections and any other investments, so that you can understand their individual and total value.

Step 2 – Understand what keeps you up at night

The next step is to consider the risks associated with these high-value assets, such as theft, liability issues or natural disasters, and how these potential threats could affect their value or your financial security. In other words, what will keep you up at night about the items you’re looking to insure. This information will help you determine the specific high net worth insurance coverage you need to compare policies to ensure that you choose one that provides sufficient protection.

Step 3 – Select the right broker for you

Look for brokers that work with specialist in high net worth insurers with a good reputation for providing tailored insurance solutions and exceptional service. With extensive industry knowledge and expertise, a broker can identify which insurers offer the right high net worth insurance for your needs.

MASECO can introduce you to a number of FCA authorised insurance brokers, that have experience of high net worth insurance and who are able to provide comprehensive insurance, subject to their further assessment of your situation.

The Legal Stuff

• This document is intended for the recipient only.
• The information contained herein is subject to copyright with all rights reserved. The document may not be copied, forwarded or otherwise distributed, in whole or in part, to any other party without our written consent.
• Nothing in this document constitutes investment, tax or any other type of advice and should not be construed as such.
• MASECO is not a tax specialist and we recommend that anyone considering investing seeks their own tax advice.
• The views expressed in this article do not necessarily reflect the views of MASECO as a whole or any part thereof.
• This document is provided for information purposes only and is not intended to be relied upon as a forecast, research or investment advice.
• This document does not constitute a recommendation, offer or solicitation to buy or sell any products or to adopt an investment strategy.

Risk Warnings:

• All investments involve risk and may lose value. The value of your investment can go down depending upon market conditions and you may not get back the original amount invested.
• Your capital is always at risk.
• Fluctuation in currency exchange rates may cause the value of an investment and/or a portfolio to go up or down.
• Alternative strategies involve higher risks than traditional investments, such as speculative investment techniques, which can magnify the potential for investment loss or gain.
• Any impact from the actual or speculative tax changes contained in this document will depend on the individual circumstances of each client and may be subject to change in the future.
• Information about potential tax benefits is based on our understanding of current tax law and practice and may be subject to change. The levels and bases of, and reliefs from, taxation is subject to change. The tax treatment depends on the individual circumstances of each individual and may be subject to change in the future.
• Certain products which may be used within a portfolio in order to give exposure to particular investment strategies may not be regulated in the UK and therefore will not have the benefit of the protections afforded by the UK regulatory regime.

Performance:

• Past performance is not a reliable indicator of future results.
• No assurance or guarantee can be given that any target return will be achieved.
• Illustrations of potential risk or return are illustrative only and do not necessarily reflect possible actual maximum loss or gain.

MASECO LLP is authorised and regulated by the Financial Conduct Authority for the conduct of investment business in the UK and is registered with the US Securities and Exchange Commission as a Registered Investment Advisor.

The firm participates in industry award programmes relating to the provision of its investment services and in connection therewith the firm may be required to pay an administration fee for the submission of its application. Where such payments are made, they will be nominal in value and will not be in exchange for any form of guarantee or promise that the firm will receive the award for which it has applied. The firm only participates in award programmes where there is an independent panel of judges.