We often talk about how middle-class and lower-class people struggle to find insurance for their cars, homes, and medical expenses. What doesn’t get enough focus is how important insurance for affluent customers is. When you have more money, it also means you often have more expensive possessions to protect.
Sometimes you might own multiple sports cars. Other scenarios include living in a mansion or having a large collection of jewelry. You need to take care of any expensive assets you own with the best insurance without spending too much. There are companies that specialize in this type of coverage, and we’ll talk about some of them below.
We’ll also discuss some of the ways you can protect your possessions so you don’t have to file a claim with your insurance company. Some accidents are unavoidable, but other times there are things that can be done to prevent the destruction or theft of expensive belongings.
#1 – Insurance Companies Experienced in Protecting Expensive Assets
One of the best companies for protecting your expensive belongings is Pure Insurance. They have policies in a variety of areas, like auto insurance, homeowners insurance, and art collection insurance. The company understands the special needs of customers who are wealthy and want their stuff protected by the best policies.
Their auto insurance policies focus on protecting many different cars under the same umbrella. Wealthy people sometimes not only own sports cars, but they own many of them. You need to protect them with a private fleet policy. This is similar to commercial insurance coverage for a company getting fleet car insurance for its fleet of trucks or work vehicles.
Pure Insurance also has special policies for your house that other insurance companies don’t help with. They try to provide extra protections for people living in expensive homes by providing cash settlements in return for broken objects in the home or damage to the property that can’t be repaired.
Other insurance companies like Prudential and AIG present some similar policies to Pure Insurance. They help their customers to recover assets and provide protection for homes that other insurance companies wouldn’t be able to cover. Custom homes sometimes cost more money and need specific insurance to cover depending on their size and the property.
#2 – What are some other assets wealthy people own?
Another reason people who have a lot of money need more protection from their insurance company is they often own objects or belongings that are harder to protect with typical insurance. Wealthy people may own things like jewelry, paintings, sculptures, pottery, or other artwork and want to insure it against damage or theft.
Most of the insurance companies people buy their coverage through don’t insure against damage to these items. Companies like Pure Insurance, Prudential, and AIG all give coverage against damage to these items, but it’s important you talk to your insurance company about which ones they cover.
Don’t assume Pure Insurance or other insurance for expensive assets will protect everything, no questions asked. You can assume if the damage is to the structure of your house, like a bathroom or kitchen, it’ll be covered. If it’s an item of value to your family and not part of the house, talk to your agent about its ability to be covered.
Another vehicle some wealthy people own is a yacht or an expensive boat. You may be able to get coverage from a company like State Farm or Progressive for this, but you’ll have better luck with the insurance companies that cater to wealthy individuals.
#3 – Do insurance policies for expensive assets have higher premiums?
Something you have to worry about if you purchase an insurance policy for expensive assets is the increased premiums compared to a typical insurance company. If you want protection for something valuable, you need to provide value in return to an insurance company. This will make sure there is less risk for everyone involved in the purchase, both you and the company.
Just like shopping for any other insurance coverage, people should go online and compare rates between the top insurance companies for large assets. It may not be as simple as typical insurance, so you first will have to research which insurance companies cater to this market and compare between those companies only.
If the cost of the policy isn’t worth it, don’t overspend. Accept the risk of having your item stolen or damaged. Everybody has to make this decision themselves and place their own personal value on their belongings.
#4 – What increases the risk for an insurance company in these cases?
Just like with any other insurance company, there are risk factors customers present to insurance companies specializing in this type of insurance. Customers should think about how they can bring these risks down if they want to get more affordable rates on their insurance.
Driving Record and Behavior is Key
Driver behaviour is always something insurance companies of all types will focus on when evaluating customers. Driving safely includes following the speed limit posted on the side of the road, not drinking and driving, and not getting into road rage disagreements with other people on the road.
Wealthy and poor people alike may have trouble keeping a clean driving record. Trying to stay patient, getting enough sleep so you’re alert and patient with others on the road, and being aware of how you can get better will all lead to better insurance rates if you’re able to stay safer on the road.
Where You Live Matters
Wealthy people often live in higher-income areas, but there can still be crimes and other risk factors at play that will increase homeowners insurance risks. Look at the crime rate in the city you want to move to before completing the purchase of a home. This will help bring rates down on your home.
Everyone Needs Insurance
Whether you’ve come into a large sum of money, or you’ve always been wealthy, you’re going to want insurance to protect the property and assets you own. Rich people treat themselves to purchases other people can’t afford, and they need the proper coverage to protect these purchases. Be patient and do some research and you’ll be successful in your shopping.
Shawn Laib writes and researches for the insurance comparison site, ExpertInsuranceReviews.com. He wants to help wealthy people understand the types of specialized insurance coverage they may need.