One of the questions we’re frequently asked by clients is “What is the difference between a high net worth carrier and a standard market carrier, and which should I choose?” So, let’s jump into some of the key differences and what you need to consider when choosing the policy that’s right for you.
High net worth carriers are specialty insurance carriers with customized programs built to meet the needs of high net worth individuals. These programs are designed to provide coverage for primary homes and secondary homes with a rebuild cost of $1.2 million or more.
The benefits of selecting a high net worth policy include having higher than normal limits available. These include higher limits for both home protection and personal liability to protect the high net worth individual.
Specialty coverage enhancements are available to meet a variety of needs. If you opt to insure through a high net worth carrier, you’ll have access to personal cyber liability protection, and a 200% replacement cost or cash settlement option. In addition, you may enjoy a deductible waiver, loss prevention of up to $2,500 to prevent a similar loss in the future, and coverage for private collections such as jewelry, artwork, or wine.
High net worth carriers are rigorous when it comes to risk management and loss prevention. They will assess your home and find unique vulnerabilities that you may not have been aware of. These carriers may require you to mitigate risk with measures like installing an automatic water shutoff, cutting overhanging tree limbs, and checking the connections on your pipes and water supply tubes. An additional perk to this assessment is that you’ll get an accurate valuation of your home, helping you to choose an appropriate amount of coverage and address potentially damaging risks.
Unfortunately, not all losses can be prevented. A primary benefit in working with a high net worth carrier is the claims process, which is simple and stress free. They don’t use call centers, so you’ll speak to only one claim adjuster dedicated to your claim. In other words, you only have to tell your story once. From there, a Member Advocate will proactively contact you to keep you updated on your claim. They’ll also research vendors and schedule consultations on your behalf to ensure all the vendors needed to perform any necessary repairs have completed background checks and are able to work around your schedule. Unlimited loss of use coverage is available to cover the full cost of alternate living expenses while your home is being repaired.
Standard market carriers sell policies that are intended to fit the majority of homeowners. They provide fixed coverage options with endorsements available to enhance each policy. Unlike policies sold by high net worth carriers, these policies are not designed for individuals with high value items, and they may have limitations on coverage for jewelry, art and cash. They do not provide any coverage for unique items such as wine collections.
Contact Atlas Insurance today to review your homeowner’s policy and determine whether a high net worth carrier or standard market carrier is the best fit for you. We’ll help you get the right coverage for your situation with a policy you can rely on.