Protecting Your Lifestyle

Sometimes it is important to stop and think about the risks of modern life, to your properties, cherished possessions, hobbies and leisure, and also more importantly to members of your family.

It is a recognised fact that as times get financially harder crime rates increase and many asset rich (or High Net Worth) people find themselves or their chattels targeted. Risks include not only theft or damage to your property, but also the effects of aggravated burglary, car jacking, identity fraud, stalking and even members of household staff suing you using a “no win no fee” lawyer. In effect risks which are associated with your lifestyle.

Clearly busy HNW people wish to continue their lifestyle uninterrupted and as such have an expectation of Insurance Brokers and Insurers alike that they will devote as much time as possible to provide a premium service, courtesy and a real understanding of how to practically achieve this, yet provide real protection when it is needed.

Insurance for HNW individuals is different to regular household insurance and is provided for by specialist Brokers and a limited number of insurers, with products designed specifically to be responsive in terms of wider cover (recognising your lifestyle) and settlement of claims. Specialist Brokers provide experienced staff that give real advice from a position of understanding and will select the most appropriate policies and make sure these work
for you.

Not all policies are the same, although they appear to be but the fact is that you will only discover how good that policy is when a claim occurs. Most standard Insurers will often dictate who you should use to repair damage or where to purchase a replacement item from. A specialist policy not only allows you the freedom to choose your own
suppliers but should also give you the freedom of choice between whether or not to replace a lost item or receive a full cash settlement. They appreciate that some items are unique or are of priceless sentimental value.

HNW policies can provide top of the range cover without onerous security warranties that impinge on lifestyles. For example, where sums insured are above average, many Insurers not only insist on installation of high specification security systems, but they also may insist that this is put into full effect when you retire for the night or when you leave the property unattended. The right Insurer understands that whilst their policyholder will take all reasonable
steps to safeguard his property, it will not always be possible to do so. For example where there are young children or late night teenagers, or pets making it difficult to comply.

Similarly some specialist Insurers will also offer to appraise your property, give advice and assistance in calculating the correct sums insured thereby providing total peace of mind from worries about underinsurance. They will be accustomed to high jewellery and Fine Art sums insured, also understand that your home is more likely to have high
specification kitchen/bathroom fittings and appliances, a home cinema and expensive carpets. This means that they can meet their client’s expectations when it comes to claims without the need to question integrity and therefore claims are settled swiftly and efficiently.

Inevitably as a HNW person, your lifestyle will often create the need to provide cover for expensive equipment used in hobbies and leisure activities and your Insurer should be able to accommodate these without any problems. In addition extra cover such as Identity Fraud and Legal Expenses come as standard. Likewise a specialist Insurer will also show flexibility towards other issues such as liability for Domestic staff/Nannies/Charity functions at home/Weddings/Functions in your grounds and cover for second homes should all be able to be catered for with minimum fuss.

Not generally recognised but a core service provided by these Specialists is help and advice on security, personal security and how to avoid or minimise some of the risks which have been mentioned. In that way by addressing the issues up front they hope to help you to be more aware of vulnerable areas and by doing so ensure that wherever possible you avoid trouble or minimise the impact on you and your family, if it finds you.

One step further than HNW insurance is “Lifestyle” protection which encompasses insurances for wider risks such as your yacht or motor boat, your helicopter and provision of financial services, through the same provider. Some Brokers will have experts in these areas who can work together to provide a “one stop shop” for both convenience and a seamless approach.

In a recession we all appreciate how important it is to evaluate our expenditure including our insurance premiums, but sometimes making sure we have the right cover for things we cherish carries a higher value than purely premium. Specialist HNW Brokers are there to provide real advice, discretion and integrity for wealthy people who need help to provide premium protection for the risks they face through the nature of their lifestyle.

By Jennie Fraser HNW Advisor E Coleman & Co Ltd