We insured a well-known celebrity recently for a high net worth Buildings and Contents insurance. The celebrity was referred into us and was previously insuring on a comparison site. A comparison site is no place for a High Net worth client, as there is no way they can be advised on all the endorsements that can catch them out, on what is known as a standard wording policy.
To make things worse this celebrity was not disclosing their status and putting sums insured down which were nowhere near the mark.
Their existing policy they held, had the following restrictions:
- First of all, they had it on 30 days max unoccupied whereas due to travel and overseas commitments they needed 60 days
- Apparently only occupied by 1 person where we know this to be 2 adults and 2 kids
- Max specified item is £7500 whereas ours is unlimited and we just need to know if over £7500
- Content sums were substantially under insured looking at the size of the property – poor broking and understanding of average clause.
- No home emergency coverage which we include for emergency repairs
- Currently has security conditions applied which excludes theft or malicious damage if the locks are not in operation or window is open – our policy is condition free
- No mention of worldwide risk – our policy provides full coverage anywhere in the world for the entire content sums.
- No identity Theft coverage
- No money coverage included
- Cannot see anything noting damage by Pets which we cover as standard
- No mention of Trace and Access coverage which we provide £50,000 coverage for in the event of a leak.
So you can see that their existing cover was seriously lacking.
We based the rebuild costs of their property on a figure off £1,700,000 and £425,000 Contents of which £100,000 covers any Jewellery or Watches. The client’s previous policy covered them for 900k rebuild, 120k contents and 40k of jewellery.
So, if this household name had a claim, their policy would have either been voided of or if there was an average clause the insurer would decide to settle this way which, means the client would be lucky to get 50% of their claim. In this case that could be an 850k deficit if the premises were to burn down.
At Goldcrest we pride ourselves on being a go to broker for the High Net Worth market. We deal with every High net Worth Insurance company and know exactly what cover you need to ensure you are fully protected. Please give us a call to discuss your needs on 0208 440 7400.
