If you’ve ever heard the term ‘High Net Worth Insurance’ (HNWI), you may have wondered exactly what it was and who it was for. It’s a product that looks pretty straightforward at first glance, however, it does raise certain questions, like “how wealthy do I need to be to consider it?” and “what does it cover against?”.

So, with this in mind, in this blog, we look into the subject in closer detail and by reading to the end, you’ll have a much better idea of whether it’s something that you need to look into further. Whilst it might be something that’s only really relevant to particularly wealthy people, it’s still nice to know what it is so that you know whether you really need it if it’s ever offered to you.

Insurance Cover For High Value Items

Rather than being a single insurance product, HNWI is a term that describes a group of financial products that cover high value items such as high-end luxury cars or works of art. It’s also something that’s used by actors, singers and even professional footballers who like to insure themselves or their belongings in case anything ever happened to them.

An example of a high profile sportsman being insured by this kind of product can be seen by looking at an article about Cristiano Ronaldo in the Daily Telegraph. The world-famous footballer had his legs insured for £90m, which just goes to show that if something has value, it can be insured.

The reason why high net worth insurance exists is because standard insurance policies don’t tend to provide the necessary levels of cover when personal possessions are over a certain value. Specifically created to cater for this need, HNWI is tailored to the individual in question so that they’re covered in case the worst ever happens.

So, What Do We Mean By ‘High Value’?

Well, for the purposes of high net worth insurance, we’re talking about goods that exceed the limitations that you might find in a standard home or life insurance policy. For example, you might find that your home insurance covers you up to £10k for any personal items that are stolen from you during burglary, however, if you have a watch worth £40k, it’s not going to be covered.

Anyone taking high net worth insurance might well also have everything else in their home covered by standard home insurance policy, with any high value items needing a separate HNWI policy. So, in answer to the question above, high value typically means anything that’s not covered by standard insurance – meaning there is no set figure.

Exactly What Kind of Items Can be Covered?

There are no hard and fast rules to what can or cannot be covered by high net worth insurance, so the list of items that can be insured is a long one. However, to provide a little perspective, we’ve listed the kind of things we’re talking about below.

● Sports & prestige cars
● High value properties
● Jewellery
● Fine art
● Antiques
● High profile occupations
● Kidnap & Ransom

As you can see, the items on the list are not usually owned by most of us, which is why high net worth insurance is something that’s typically only used by the rich and famous. If it’s something you do need, then well done, because you’ve got some pretty valuable assets in your possession!

Live a Money Savvy Life!

At BeMoneySavvy.co.uk, we bring you articles like this one to provide insight and clarity into the financial industry. The insurance industry as a whole has a pretty bad reputation and everything we do is focused on providing transparency and a much better overall customer experience that many others offer.

Our team is both FCA compliant and constantly striving to remain fully up-to-date with market changes, so that we can offer you the best and most prudent advice. If you’d like to see more about what we do, head over to our website www.bemoneysavvy.co.uk and have a look around.

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Thanks for reading our blog. We’ll be back again soon with more advice on how you can be money savvy in everything you do.