McClarrons’ Art & Private Client team offer advice on how to get the most out of your High Net Worth Insurance.
Choosing insurance to cover some of the things that are most dear to you can be difficult if you want to get it right. Go too cheap, and you might not have nearly enough protection. Too cautious, and you could be overpaying unnecessarily. Here are five things to consider, and how an insurance broker can help with each:
- Choose on value, not price
There will always be a cheaper option, but as with everything, it can come at a greater cost. Make a decision based on what an insurance product offers rather than the cost. Going through the policy summary will provide information on key benefits and conditions or exclusions. Your broker should highlight the areas of cover most relevant to you.
- Read the small print
While understanding policy wording, limits and conditions is important, it’s only half the story. If the broker you’re using doesn’t have an in-house claims team, then the insurer’s claims team service is what you’ll experience in the event of a loss, so it’s worth considering how quickly they settle claims – some insurers use a customer satisfaction score to measure this. Your broker should be able to tell you the difference in claims-handling between each provider.
- Value specific items
It’s best to have any items over £10,000 valued to reduce the chance of underinsurance and speed up the claims process. For your home, this will be the rebuild cost, and insurers may offer a survey for larger properties.
Some insurers may provide extended replacement cover. This means that if you have a valuation for a piece of jewellery that’s then lost and the replacement cost is higher than you have stated in your insurance schedule, it could still be covered. On your building’s cover, this protects you against additional costs such as any increases in the costs of building materials.
- Give more information, get more options
The insurer wants the reassurance that any previous claim you may have had is a one-off. If you provide as much information as you can about a previous claim, and anything that’s been done to prevent a similar scenario in the future, the insurer will be more inclined to provide cover. Without this information, you could be closing doors on a number of providers.
- Use a broker you trust
A good broker should be able to advise you on all the above points and explain what you’re purchasing with confidence and clarity. It’s best to go off referrals and recommendations when searching for a broker, as confidentiality can make testimonials difficult to obtain.
If you have any question regarding the above, our High Net Worth team at McClarrons would be happy to answer them. Email Ben Pickles, Art and Private Client Manager at firstname.lastname@example.org or call 01653 697055.
Author: Ben Pickles, Art & Private Client Manager
Tel: 07376 082402