5 areas where you might be underinsured and paying too much

Thought Leadership on Protecting What You’ve Worked so Hard to Build presented by Jeff Bernard at Rampart Insurance Services.

As we launch into 2016, you’re probably taking inventory of your business to see what adjustments need to be made for the new year. You should do the same when it comes to your personal property and liability exposure.

The truth is, you’re probably overpaying for too little coverage in key areas that could prove costly if the unexpected happens. Why not make the adjustments now, and potentially save millions of dollars in losses, and even more in premiums where you might be overpaying?

As a high-net-worth individual, your risk exposure is quite different than the average person, and it requires more detailed attention. Whether it’s guarding against natural events like wildfires that threaten your vacation home, or a lawsuit from a guest that gets injured at your holiday party, your needs are different. Your exposure is different.

It’s not uncommon for us to find that high-net-worth individuals who come to us are often paying too much for too little coverage, especially when it comes to personal property and liability.

It’s important to make sure you’re looking at the entire picture. It’s not enough to just get a policy. We must not only look at your assets — we want to protect your lifestyle and all of the unique potential risks that come with it.

Here are a few key points to consider at this time of year:

  • Is there a sizable gap in liability coverage between your auto policy liability limit and your umbrella policy? It’s possible you could be unknowingly self-insuring a sizable amount of money here. The weather in the northeast is turning cold, and auto accidents will be on the rise.
  • When is the last time the market value of your real estate was updated on your insurance coverage? Is your $2 million home really worth $4 million?
  • Do you have employees working in your home this holiday season, such as cleaning services, catering companies, etc.? Do you have the proper coverage amounts for this, and the right kind of policy to protect you from potential liability?
  • What is your personal liability exposure, and do you have adequate coverage at the best possible price? If you own a business valued at $20 million, you have a target on your back. If you have an auto accident, your $1 million or $2 million umbrella liability policy just might not cut it.
  • What about your toys — boats, fine wine, jewelry, high-end art work or jet skis? Prior to working with us, we find that our clients are not typically insuring these things properly, or we find that they’ve been paying too much to insure these items. For example, maybe you have some expensive pieces of jewelry that you use once or twice a year that can be stored in a vault, which would save you money on your premiums.

The bottom line is that as you celebrate and prepare for the new year ahead, take some time to examine these issues. Take inventory of where you stand with your loss exposure and your insurance coverage.

Let’s have a conversation and help you determine what you really need, and also determine where you might be overpaying.

You’ve worked too hard to build your business and your wealth to see a gap in coverage put it all at risk. You deserve to celebrate the new year knowing that if the unexpected does happen, you have a plan in place to protect your lifestyle and livelihood.

Happy holidays!

Click here for more Thought Leadership from Jeff Bernard.