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You don’t have to live in a castle to benefit from specialist high value home insurance and this type of policy can offer lots of extra benefits.
It’s often the case that it’s only when you come to make a claim that you really find out how good or bad your nome insurance policy is. These days so many insurers compete on price – especially via price comparison sites – that it can be tempting to go for the cheapest option without really checking exactly what you’re getting for your money.
High value or ‘high net worth’ policies aren’t for everyone: if you live in an average two or three-bedroom property and you don’t have a taste for antiques or vintage designer clothes, you’ll probably find a high value policy is a bit of a waste of money. But for those who live in expensive or unusual properties, or who own valuable art, antiques or jewellery, they’re definitely worth considering.
What is a high net worth policy?
High net worth policies vary from insurer to insurer, but in basic terms they should include:
Higher limits on cover or unlimited cover.
A number of mainstream insurers have recently started offering high value or unlimited cover on buildings and contents policies. However, they may not all offer the extras that some specialist high value policies do.
Higher cover for valuable items.
Many standard policies ask you to list items individually costing more than £1,500, which high value policies generally don’t (or if they do, they’ll impose a much higher limit, such as £15,000).
Accidental damage to both home and contents and business cover for home office equipment as standard.
With many standard policies, you have to pay extra for this cover.
Cover for properties with unusual construction.
You don’t have to use a high net worth policy if you live in a property with unusual construction (anything from a contemporary glass-clad tower to a Grade 2 listed property) but high net worth insurers are more used to dealing with non-standard construction homes.
Higher alternative accommodation limits.
No-one likes to think that their home will be damaged to such an extent that they’ll need to move out for several months, but unfortunately it does happen. The best high value policies have unlimited alternative accommodation cover (some stipulate that you can live in alternative accommodation for up to three years).
Worldwide cover on possessions as standard.
This doesn’t just mean that the contents of your two suitcases are covered while you’re away, but any expensive jewellery you take with you and – in many cases – full travel insurance will be included as well.
Cover for family members’ possessions.
This varies from policy to policy, but a high value insurance policy may include cover for your parent’s possessions if they have to go into care (normally up to a limit of between £5,000 and £10,000), cover for your children’s possessions while they’re at boarding school, and some include cover for guests’ possessions while they’re staying at your home.
A ‘no quibble’ claims policy.
This doesn’t mean that all claims will automatically be paid, but high net worth insurers do tend to take a much more flexible approach. With a normal policy, you typically have to be a square peg in a square hole, whereas with a high net worth policy the insurer generally won’t quibble if you have an antique clock collection or a wooden staircase that’s a fire hazard.
How much does high net worth insurance cost?
As with all insurance, premium levels will vary depending on the insurer and your own property and contents, but increased competition means premiums for contents policies can start from around £400 a year. Of course, the amount you’ll pay will depend very much on your individual circumstances and the value of your home and its contents.
Premiums have started to come down because:
- Competition among providers of standard policies is intense and profit margins have fallen.
- High net worth customers are seen as a good risk. Although claims can be very high, many customers have state-of-the-art alarm systems and other measures designed to reduce the chances of a burglary.
- High net worth insurers can help reduce that risk. If you take out a policy, the company will often help you catalogue any collections you have (or suggest ways to improve your property’s security.
Where can I buy high net worth home insurance?
If you type ‘high net worth insurance’ into Google, you’ll get dozens of results. If you want to shop around yourself, make sure you take the time to compare the terms and conditions of the different policies (that means trawling through the policy document and not just the on-screen summary) so you know exactly what you are and aren’t covered for.
Alternatively, go to the British Insurance Brokers’ Association website to find an insurance broker who specialises in this type of insurance as they’ll be able to find a policy that matches your needs.
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