How to know if you are underinsured?
For individuals with luxury lifestyles and high-cost assets, standard home and contents insurance policies won’t cover your risks. Unique lifestyles require unique cover, and knowing how much cover you require is essential. The most accurate way to know if your assets are adequately insured is by utilising the services of a broker.
It takes a strong, competitive broker to negotiate the best policy with insurers. It’s our mission at Romero Insruance Brokers, to protect you, your family, your world and everything it includes.
High Net Worth Insurance vs. Standard Insurance Policies
Arranging your own insurance, perhaps by using insurance from a comparison site or by going directly to an insurer, will most likely leave gaps in your cover. This means that if the worst were to happen and something gets stolen or is destroyed, your possessions would not be properly protected. These situations cause unnecessary hassle and great emotional distress.
Most of the complaints we hear from new clients is that the level of cover they had received previously wasn’t right. They had under-estimated the cost and total value of their belongings. Insurance companies then did not pay out the full cost of lost items when they went to make a claim.
Whether its cars, bikes, jewellery, heirlooms; private clients and high net-worth individuals are more likely to be targetted, and because of everchanging valuations, are likely to be underinsured.
At Romero Insurance Brokers, the single article limits within our High Net-Worth Insurance policies are much higher. We take the time to fully understand your needs and items, in order to deliver a comprehensive insurance portfolio.
What are the consequences of underinsurance?
If your cover is less than the valuation of your items, then you are underinsured. Therefore, when making a claim, the ‘condition of average’ will come into play. This is a rule that calculates what payment you will receive – The insurer will only pay that percentage of your claim, minus the policy excess. Percentage is calculated as your Sum Insured (the amount you are insured for) divided by the Accurate Valuation (the correct value of your property). The insurer will only pay that percentage of your claim, minus the policy excess.
The more underinsured you are, the more you will have to pay out yourself should you need to make a claim. How to know you are underinsured is by a conducting an uptodate valuation of your assets, and also a review of your possessions to assess whether anything is missed and reqwuires insurance. At Romero Insurance, we offer visitations, providing guidance on what can be included in our cover.
What is included within Private Client Insurance?
Our team at Romero Insurance Brokers are proud to be able to cover anything, however unique it may be. We have experience protecting a diverse portfolio of items; from extensive vintage car collections, to rare wines, to some of the finest homes in the world.
Homes, cars, sculptures, antiques, jewellery, watches; all are frequently underinsured. Calculating the expense of what it costs to replace them can be difficult, and for some priceless items, impossible. But to be properly covered, this accurate valuations are essential. Which is why we have put together a list of important tasks to help prevent high net worth individuals being underinsured.:
- Walk round each room of your house and estimate the value of all the items you’d want to save in case of a fire or irreparable flood damage.
- Then also calculate the cost of your clothing, electrical items, bikes and possessions of considerable material value.
- Then add the cost of your carpets, curtains, fittings, chandeliers and utensils.
- Then calculate the cost of rebuilding the house. This includes the value of the house, the labour and the time it would take.
- Now look at your home and contents insurance policy wording, does it cover the total sum you’ve calculated?
- Does it specifically cover your art collection, antiques or collectables? Perhaps you are required to list these items – Is the list up to date? New items must be registered within a certain timeframe after purchase or risk not being covered.
Why Romero Insurance is the best choice for High Net-Worth Individuals
The relationship you build with your broker is so important to getting the right cover. At Romero Insurance, we are determined to offer you the time that’s needed to correctly settle your insurance and to negotiate the best rates. We skip the jargon, we’re straight talking, and warn you of the reality and serious consequences that come with not being properly covered.
No call centres. No complicated contact forms. All our clients get a dedicated point of contact who is there for you at all times. Our concierge-level service is second to none, with dedicated handlers helping you every step of the way.
Contact Romero Insurance today for more information, or arrange a confidential review to allow us assess your risk of underinsurance.