insurance for affluent individuals
Property Casualty

Complex Lifestyles Equal Complex Insurance Needs

Luke Anderson
Luke Anderson
Holmes Murphy

It’s no secret that financially successful individuals and families tend to have more complex lifestyles. I’ll explain exactly what I mean by this in just a second…but, the point of me starting my blog like this is that with these lifestyles comes a higher risk of insurable loss than what the average American deals with. There is no “one-size-fits-all” solution, and too often, these individuals and families have outgrown their existing coverage, leaving their wealth and lifestyle vulnerable should a major accident, lawsuit, or other form of loss occur. If you’re in this category, I encourage you to keep on reading to ensure you have what you need in place!

When I mention “complex needs,” I’m talking about high-valued residence, property in high-risk areas (coastal, wildfire, earthquake, etc.), property in multiple states or abroad, high-valued collections (jewelry, art, wine, etc.), domestic staff, high public profiles, private aviation, and/or global travel. Here’s where the problem comes in — many financially successful individuals and families are unaware of their lack of appropriate coverage because they are insured by standard mass-market insurance carriers that do not cater to the unique needs of affluent clientele. This may be because their insurance advisors do not have access to — or simply do not know about — their complex needs. It’s imperative to identify and understand potential personal asset exposures beyond traditional insurance programs. If you find yourself in this position, ensure your insurance advisor has direct access to all the carriers that specialize in protecting the complex needs of families and individuals.

On top of this, annual renewals are incredibly important. Your advisor should be able to leverage their expertise and offer you a detailed evaluation of your existing coverage and policies, with specific emphasis on adequacy of limits and potential gaps in your protection. Your advisor should also annually review your insurance portfolio and make annual recommendations based on market trends, new products, and the changes within your continued financial growth. Simplification is key as well. Making sure you have one common effective date for all policies will help simplify your life, simplify your renewal process, and make your program much easier to manage.

If you have questions on any of this, please don’t hesitate to reach out. We have staff acutely aware of the challenges and risks that come with affluent lifestyles, and we’re well equipped to handle these unique needs.

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