Stars — they're just like us! Well, maybe not, but they need personal lines insurance too — just on a different scale.

High-net-worth (HNW) individuals have unique insurance needs. The affluent are often high profile, with their every move and financial status in the spotlight. They have higher-value property assets and greater liability exposure than most individuals.

"From musicians to actors, athletes, CEOs and titans of industry, these individuals have significant assets to protect and are often the target of lawsuits that come with name and face recognition," says Sherri G. Hicks, RPS Personal Lines underwriting manager. "As a result, a more personalized and specialized approach for coverage placement is required to address their lifestyle and risks."

Personal Lines for Multiple Homes and High-Value Assets

Affluent individuals typically own luxury primary and secondary homes, requiring specialized coverage that accounts for their unique value and the potential cost of replacement or repair after a loss. An underwriter needs to be cognizant of the client's property portfolio and valuables to obtain some of the broadest coverages available, as their homes and estates require property coverage that sometimes go beyond standard homeowners policies.

In addition, many HNW individuals have family heirlooms, expensive jewelry, high-value fine art, antiques, wine collections and other valuable possessions and collections worth thousands of dollars and more.

"This requires the broadest coverage available to ensure they are indemnified if a loss occurs," explains Hicks.

Where to Go to Insure High-Net-Worth Homes

"In today's environment, it can be challenging to find coverage in the admitted market for high-net-worth individuals because of their occupation or location of the property," says Hicks. "For example, admitted markets that specialize in the space are limiting their capacity in writing professional entertainers due to their high liability risk."

In addition, homes located in high-catastrophe zones where hurricanes and flooding are common, as well as those in wildfire-exposed areas out west, are also tough to write in the admitted market, depending on the homes' values.

"The Excess and Surplus (E&S) Lines market has stepped in to offer solutions when the admitted market is no longer available," says Hicks.

"In some cases, the property portion of the homeowners' policy may be placed in the admitted market and the liability and excess/umbrella coverages are written on E&S policies. In other cases, both the home and excess/umbrella are written with E&S carriers."

Depending on the carrier's underwriting guidelines, the E&S market can also provide insurance solutions for catastrophe-exposed risks.

"Named-storm and wind/hail deductibles are available. In addition, insureds can purchase a wind buyback deductible policy to reduce their named storm or wind/hail deductible," explains Hicks.

Partnering with RPS to Insure the Homes of HNW Individuals

Insurance for high-net-worth individuals is a specialized field that recognizes the unique risks and assets associated with this demographic. RPS is experienced in serving high-net-worth clients and putting together comprehensive coverage tailored to these clients' specific needs.

"We can write multi-million dollar properties and provide high-limit umbrella policies for HNW individuals," says Hicks.

RPS works with traditional HNW markets, providing a package solution for agents who don't have the volume required or contracts with carriers, as long as the risk fits the insurers' underwriting guidelines.

RPS also works with the E&S market to provide property and liability coverages where there is gap in the admitted market, and to place an end-to-end solution for risks that fall outside the standard markets.

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