What is insurance for high-net-worth individuals?

1 min read by Unbiased team Last updated October 4, 2024

Find out what insurance for high-net-worth individuals looks like in the US and whether or not you qualify for this tailored, high-value form of asset coverage.

Summary 

  • High-net-worth individuals have a net worth between $1 million and $50 million.  

  • Insurance for high-net-worth individuals offers special coverage options for luxury assets and atypical personal accidents.  

  • If you are a high-net-worth individual, obtaining high-net-worth insurance offers numerous benefits, including protection against identity theft and fraud, business property coverage, replacement loss coverage, and coverage to pay for living expenses. 

  • Finding a financial advisor can ensure you secure the correct coverage for your income and assets.  

What is considered a high-net-worth individual? 

A person’s net worth is the financial difference between their debt and assets.  

Generally speaking, a high-net-worth individual is someone whose net worth or liquid assets exceed at least $1 million.  

A net worth of over $10 million places you in the upper cap of high-net-worth status, while a total asset value of over $30 million will categorize you as an ultra-high-net-worth individual.  

High-net-worth individuals typically require more tailored insurance plans that accommodate a more complex, diverse estate or asset portfolio. This is where high-net-worth insurance comes in.  

What is high-net-worth insurance? 

High-net-worth insurance provides superior, more comprehensive coverage for assets that standard insurance policies do not.  

This can include insurance for fine arts, personal accidents, luxury items, car collections, and jewelry.  

High-net-worth insurance also typically includes enhanced access to special events, perks, and fiduciary advice.  

Do I qualify for high-net-worth insurance? 

Qualification criteria for high-net-worth insurance vary depending on which brokerage you obtain it from.  

However, if your net worth is more than $1 million, you likely qualify for at least the most rudimentary forms of high-net-worth insurance.  

What does high-net-worth insurance cover? 

Insurance for high-net-worth individuals differs from standard insurance plans because it offers coverage beyond basic assets like hospital care, property, or a vehicle.  

In addition to providing coverage for these fundamental types of assets, it can cover high-end or luxury assets and multiple iterations of those assets at once.  

These can include:  

  • First/second/holiday homes 

  • Fine jewelry 

  • Heirlooms 

  • Vintage car collections  

  • RVs and motorcycles 

  • Yachts and boats  

  • Wine collections  

  • Passive income rental properties  

Insurance for high-net-worth individuals can also cover special options not typically included in insurance policies, such as damages caused by libel, ransom, and flood-related losses.  

High-net-worth insurance is also something to consider if you have a high-value home.  

In the US, a high-value home is considered to have a replacement value of at least $750,000. These homes tend to have historic value, state-of-the-art architectural features, and are located in a desirable, upscale neighborhood.  

What are the benefits of high-net-worth insurance? 

If you are a high-net-worth individual, there are many advantages to obtaining high-net-worth insurance.  

There are higher coverage limits, identity theft, and fraud protection.  

Often, high-net-worth insurance offers benefits that are not typical of standard insurance policies.  

High-net-worth insurance vs. life insurance: what’s the difference? 

While high-net-worth insurance and life insurance do overlap in some areas, the former generally focuses on property insurance, including estates and the assets bound to those estates.  

In contrast, life insurance is more concerned with coverage in the event of a person’s death.  

The key difference is that high-net-worth insurance provides coverage for the property and belongings of living, high-net-worth individuals, and life insurance pays out a death benefit to a deceased person’s named beneficiaries after their passing.  

What are the different types of high-net-worth insurance? 

Under the umbrella of high-net-worth insurance come a few subcategories.  

There are high-net-worth insurance policies specifically designed for property, watercraft, art collections, personal accidents, household contents, and full asset coverage.  

Do I need high-net-worth insurance? 

If you are a high-net-worth individual, there is much to be gained from obtaining the corresponding insurance policy.  

The more valuables you possess, the greater the need to protect them in the event of theft or disaster, and the greater the loss if they are compromised.  

People who obtain high-net-worth insurance tend to be individuals with strategic, long-term wealth development goals who need robust coverage policies to protect their current assets and ensure sustainable financial growth.  

Insurance for high-net-worth individuals gives them more financial security and cushioning should their assets be damaged and can contribute more overall value to an estate.  

How to choose the best high-net-worth insurance 

The best way to choose high-net-worth insurance for your estate or assets is to consult with a financial advisor to determine whether you need it and, if so, what kind of insurance policies you will benefit from most.  

Working alongside a professional advisor can provide insight into different premiums and policies you qualify for and how to obtain them.  

Unbiased can match you with a financial advisor who can offer expert financial advice about high-net-worth insurance and ensure your assets are looked after and your financial future is secure.   

Writers

Unbiased team

Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.