HNW Clients, Don’t Put Yourselves at Risk of Underinsurance!

*In conjunction with Ecclesiastical  

  If you’re a high-net-worth individual, the last thing you want is to be caught out by underinsurance, but, with economic times remaining turbulent, high net worth individuals are not immune from the phenomenon. In fact, brokers are noticing a worrying trend that HNW clients are increasingly requesting their premiums and cover to be reduced, resulting in the very real danger of underinsurance.

  Insurance carrier, Ecclesiastical, recently compiled some disheartening figures. In a survey of 100 brokers, they reported that ¼ of their clients reduced cover between summer 2023 and summer 2024 – a significant amount. As a result, 29% of those brokers believed their HNW clients were underinsured.

  Aviva, too, has come to a similar conclusion. Of the brokers it recently surveyed, 73% were concerned about clients being underinsured.  

A closer look

Here’s how the stats stack up regarding HNW clients and their insurance. Brokers are seeing:

 

• 76% out of date valuations
• 74% lack of awareness of value of property and possessions
• 71% lack of awareness of cost of repair and rebuild of property
• 70% not reviewing and keeping up-to-date with their sums insured

    And the most underinsured areas are:

 

• Buildings 66%
• Jewellery 62%
• Contents 59%
• Watches 53%

  In addition, as well as more HNW clients asking to reduce their premiums, over half are choosing greater policy excesses, too.  

Why reducing cover is a short-cut to disaster

If you're a high-net-worth individual, slashing your insurance cover might seem like an easy way to cut costs, but it could end up costing you way more in the long run.

  Your home, cars, art, jewellery and other prized possessions aren’t just expensive; they’re unique, and standard insurance often won’t fully cover them. If something goes wrong - whether it's theft, damage, or a natural disaster - being underinsured means you could be left footing a massive bill. Plus, many insurers expect you to keep the right level of coverage, so reducing it might lead to penalties or lower payouts when you actually need to make a claim.

  Beyond your possessions, there’s also the bigger picture: your reputation and financial security. A solid insurance policy isn’t just about replacing stuff; it covers legal fees, crisis management and other unexpected costs that could seriously impact your lifestyle. Cutting corners on cover might seem like a quick win, but in reality, it’s leaving yourself open to risks that could do some real damage.  

So, how to avoid underinsurance?

As a High Net Worth individual, it’s vital to keep an eye on all of your insurance policies and make sure they’re still working for you.

  Keep your policies up to date and ensure they actually reflect what your assets are worth. Working with a specialist broker can be a game-changer in this instance - they’ll tailor coverage to fit your lifestyle, whether it’s a high-value home, fine art, classic cars or even a wine collection.

  Getting regular professional valuations is key, so you’re not left short in the event of a claim. Look into things like extended replacement cost policies or agreed-value coverage for extra peace of mind.  

  And don’t forget about risk assessments - good security and disaster planning can help reduce exposure. Stay on top of your coverage with regular reviews, and you’ll be fully protected if the unexpected happens.  

A quick guide on when to review:

• Sums insured – once a year
• Jewellery and watches – every 3 years
• Fine art and antiques – every 5 years

 

Want to talk to a broker who understands the importance and intricacies of protecting your assets? Contact Ascend Broking Group today on 01245 449060 or email matthew.collins@ascendbroking.co.uk for a comprehensive review of your insurance policies.

If it’s important to you, it’s important to us!