November 19, 2015

Insurance Coverage for the Affluent

What types of coverages can the affluent get with their Homeowners, Automobile, and Umbrella Insurance?

Well to do / Affluent clients often have different needs and there are a handful of Insurance Carriers that cater to them.   Typical Preferred Insurance carriers can and often to do serve the well to do nicely however, there are often times when the Affluent Insurance provider may be a better choice.  Read below for a select few common differences that ‘may’ apply:

1. Personal Property Replacement Cost.   With Preferred Carriers this is usually an endorsement option, however with the Affluent Provider it is typically standard.
2. Replacement Cash Out Option.   This may be an option occasionally with the preferred carriers, but with the Affluent carriers it is usually standard.    Depending on where you live in and around the San Francisco Bay Area, this may not make sense to exercise this option, however, this could make solid sense in certain situations.
3. Extended Replacement Cost.  I have written before about the need for additional extended replacement cost insurance with Preferred Providers, however with Affluent Providers you can see Extended Rebuild amounts up One Hundred Percent (100%) on top of the primary coverage A.
4. Determination of Policy Coverages.  Affluent Insurance Providers are more likely to have an onsite inspection that determines the exact value and coverage amounts.
5. Agreed Value.  Agreed Value clears up the air in the beginning about exactly what we are talking about insuring and for what amount.   Affluent insurance providers like this option, especially with your Auto Insurance.
6. Loss of Use – Affluent Insurance Carriers may offer upwards of an unlimited amount.
7. Flood Insurance Coverage – may be included at no additional cost with an affluent provider or it may be a low cost option.  Most home in and around Marin County should consider flood insurance, even if you are not in a SFHA.
8. Mold coverage, a real need in Marin County, is typically added as an endorsement to preferred providers, but often it is included with Affluent providers.  Mold coverage may include both property coverage and liability.  For well to do clients the liability side may be more important.
9. Sewer Back Up and Drain, like Mold coverage, this is typically added as an endorsement to preferred providers, but often it is included, standard, with Affluent providers.
10. Deductible Waivers, may be added to some affluent insurance carriers.
11. Identity Fraud Expenses, a higher amount if usually standard with the Affluent Carriers.
12. Kidnap Expense / Ransom and Kidnap – Typically unavailable with the Preferred Insurance Carriers, this is the kind of coverage that no one likes to discuss that is available from many well to do providers.   For the High Net Worth Client this is really something that they should consider.
13. Higher Rental Car Auto Insurance amounts for a covered loss with auto.  This can be provided World Wide, or at least Internationally.
14. Blanket coverage for certain high value items, typically not allowed with the preferred providers (although there are some notable exceptions to this) Affluent Insurance Carriers tend to welcome this.   Blanket coverage for specific pieces is slightly different that declared floaters, so speak with your agent.
15.  Pair and Set Total Loss, pretty much only available with Affluent carriers.
16. Fragile Items Coverage of breakable components, such as crystal, etc.
17.  Higher limits, all around.  Affluent carriers have higher limit options for most considerations.
18. Reputation Damage, Not available with typical premier insurance carriers, but may be available from a Affluent carrier.
19. Employment Practices, Not available with premier carriers, but is an option with some of the best Affluent carriers.  EPLI, as well as workers comp, is a must have if you have employees.
20. Increased Business Property Coverage is a distinction between premier carriers who will often limit it to $5K, while Affluent carriers may go much higher.
21. Natural Catastrophe Protection, only available with the Affluent carriers
22. Background checks for staff, usually only available with the affluent options
23. Worldwide Vs US and Canada.  Typical Premier limit coverage for liability and personal property to the US and Canada,  not the Affluent carriers.
24. Significantly higher Umbrella Insurance Options.  When I say higher, I mean much much higher.

This is not intended to be a complete list, but a good sampling of some of the differences.   Does a potential client need all of these coverages to consider an Affluent Insurance Provider?  No, even if just one of these coverages is useful for them, an Affluent Carrier may be the right choice.

Scott W Johnson 0H11625

Marindependent Insurance Services LLC 0K10734 – 415-294-5454 – Independent Personal Lines Insurance in the Heart of Marin County.

Please read our disclaimer.  Please speak with a license insurance agent or insurance broker in your jurisdiction at all times when making decisions concerning all insurance.