Sometimes, it’s hard to justify spending more money to improve your insurance program. In most cases, we think our Agents and Brokers are doing a great job when they save us money. Although this is certainly true, there needs to be a clear understanding of what type of policy you are purchasing and how it will respond. Being aware of the difference between a standard market personal lines policy and a high net worth policy could be the difference of hundreds of thousands of dollars in the event of a claim.
Our client came to us with a standard market lines policy for their primary residence. After our initial consultative review process of their program, we determined that the client would be a better fit with a High Net Worth carrier. The reason we made this decision together was due to the client’s home being worth around $1.5 million. Their current standard market policy had the home insured for $867K, well below the replacement cost value of the home. Although the client was hesitant to move to one of our high net worth carriers, they did see the value in having their residence insured properly with the proper limits of coverage.
After a hurricane hit the coast of Florida, our client’s home had been severely damaged. If they hadn’t secured coverage with the proper limits and with a high net worth carrier, they would have lost hundreds of thousands of dollars to rebuild their home. In this instance, our high net worth carrier stepped in and made the situation whole in a matter of months without any hesitation. The trust that our client put in us to help make this decision has greatly benefitted their family’s livelihood.