What do hospital gowns and insurance policies have in common? You’re never covered as much as you think you are!!
This is especially true when working with successful families who frequently ask: How is private client insurance different? The common misconception is that personal lines insurance policies are all the same … which is especially untrue in the private client space.
In my role as a private client advisor, all-too-often I speak with an accomplished individual that has basically ignored their personal insurance coverage since college … yet they believe that their policy will cover them better than a hospital gown.
Take into consideration all of your accomplishments and everything that’s changed for you since college. Then ask yourself, “Am I properly protected?”
While a traditional policy from your everyday insurance company may have been great when you were just getting out of college … think about how much your life has changed since then. Then ask yourself, “When was the last time I sat down with an insurance agent to really review everything I have going on?”
If the answer wasn’t within the past year or two, then it’s worth scheduling a consultation with someone who is experienced in protecting those who have more than most. Don’t let advertising fool you, spending 15 minutes to try to save some money on insurance could haunt you when it’s time to file a claim.
If your home is worth over $500,000, you should consider additional coverage added to your policy. Speak with your risk advisor about the following:
- Total Loss Cash-Out Option: Are you sure you want to rebuild on the land you have if you suffer a total loss on your home? The cash-out option will allow you to take the money from the loss of the home and use it to buy elsewhere.
- Can a regular policy do this? Absolutely not. Most mainstream insurance policies require that you rebuild the home.
- Cyber Liability coverage: Phishing emails, cyber bullying, personally identifiable information sold on the Dark Web … hackers are everywhere and attacking in new ways every day. With your job title, you are a primary target for hackers. When you suffer a cyber-attack, you will need a team of professionals on your side to protect you. Insurance companies like Cincinnati Insurance Company are even willing to offer this coverage for those in the emerging high net worth space.
- Workers Compensation and Employment Practice Liability coverage: Do you hire help to maintain your lifestyle? Both of these traditional “business” policies are critical if you have a nanny, housekeeper, landscaper, chef, or personal assistant on staff. The cost to defend an accusation against one of these types of claims could make a severe impact. Private client carriers like Nationwide Private Client could provide employers liability limits of up to $100,000.
- Valuable Articles coverage: You probably didn’t have those valuable collections when you were just leaving college … have you spoken with your agent about the total value of your collectibles – art collection; sports memorabilia; classic cars; wine collection; cigars. When it comes to protecting the passions in your life, having proper valuable articles coverage is critical.
- Director & Officers coverage: Do you sit in on a non-profit board? Did you know your personal assets are at risk because of your role at the non-profit? Having D&O coverage on your policy can help protect you if you are personally sued in connection with the non-profit.
- Travel Insurance: Many of our successful family clients enjoy traveling and seeing the world. With a travel insurance policy, you receive benefits that includes help with medical evacuation for illness and injury, coverage for medical expenses that go beyond the coverage limit (excess coverage) … and a myriad of other benefits that could come into play if that dream vacation turns into a nightmare.
- What is your deductible? Here’s a place where you can potentially save some insurance premium by being a savvy insurance consumer. You don’t want to file small claims (ones that you could easily afford to pay out of pocket). Save the insurance coverage for when you have something go wrong that would dramatically alter your lifestyle. If you know you aren’t likely to report a claim on a $4,000 loss … ask for a higher deductible on your policy. Many of my clients elect either a $5K or $10K deductible and enjoy the additional premium savings as a result. It’s also worth noting, companies like CHUBB or Pure Insurance would possibly waive your deductible on losses over $50,000.
I understand that most people treat their personal insurance like another item on the to-do list. It’s easy to assume that you’ll be covered when a loss happens, but if you are insured by a company that doesn’t specialize in working with private clients … you may not get the quality of care that you have come to expect in your lifestyle. Don’t be that person in the hospital gown with your assets exposed!