By Michael A. Sukle,
Risk Management = Wealth Protection
It is very common over time for your risk profile and exposure level to evolve to the point that your personal insurance does not provide adequate protection, leaving you vulnerable. A single catastrophic property or casualty loss can obliterate what was once an optimal, comprehensive financial plan. Affluent and prominent individuals and families have complex and changing risk profiles that require risk management services.
Uncovering potential exposures before they become a problem is essential. As your trusted advisor, we can accomplish this by posing effective questions and reviewing your unique situation. We utilize sound risk management practices to help manage complex risks and provide solutions. Our purpose is to provide you with the security of knowing that your interest and lifestyle are adequately protected.
The following is a summary of assets you might have at risk and the coinciding potential issues affecting these assets. Any of these “indicators” could lead to increased property and casualty risk. If a review of these indicators reveals areas where you may not be adequately covered, we recommend a comprehensive review of your coverage by a broker who focuses on placing complex risks.
Asset at Risk Potential Issue
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Own a home with unique features or building materials. |
Limitations within standard homeowners policies do not allow for replacement of unique features, including materials and workmanship of like kind and quality. |
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Have a guest house, pool, or other structure of high value. |
Standard homeowners policies provide coverage within the “other structures’ limits” that are usually restricted to 10 percent of the dwelling. We have markets to meet every client’s requirements. |
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Plan to remodel or expand an existing residence. |
Within standard homeowners policies, extended replacement cost is restricted to certain dollar amounts in improvements. Theft of these construction materials is usually excluded. |
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Multiple high-value homes in multiple states. |
Multiple homes, policies, and agents or brokers can create a heightened danger of liability limits not providing adequate coverage or not meeting required underlying limits for an umbrella policy managed by a different agent or broker. |
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Own a home in a foreign country. |
Local policies provide very restrictive coverage compared to domestic coverage which can create gaps in coverage leading to unidentified exposure. |
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Own a condo as a second residence or investment property. |
Condos require special additions, alterations, and loss assessments coverage that could lead to substantial out-of-pocket expenses in addition to loss of rental income. |
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Co-own or have a property in trust or own as an LLC. |
If not properly named on the insurance contract, these owners will not be covered. |
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Own antique cars that are used on a limited basis. |
Standard policies have high premiums with limitations of coverage; these policies do not provide adequate coverage for repair or replacement. |
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Have significant collections of art, cars, or other valuables. |
Restrictions within standard homeowners policies limit losses on valuable items ($1,500 for jewelry, fine art, and collectibles. |
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Own aircraft, large boats, or equine. |
Special coverage is required that is not available through standard insurance carriers. |
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Have a high-visibility career or lifestyle. |
Cyber exposure is a growing concern with the internet and social media becoming mainstream ways of communicating. Coverage should not only match current net worth but also future earnings. |
| Children away at school. | When children are away at school, there are special coverage considerations that need to be made for related exposures. These should be discussed and carefully considered to determine the liability that may expose the parents and their assets. |
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Domestic help (part or full time). |
Homeowners policies do not offer workers compensation coverage. State requirements for employees vary by state. |
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Board appointments of profit and not-for-profit organizations. |
Personal liability coverage within a standard homeowners policy does not provide directors and officers liability protection, including breach of fiduciary responsibilities and other related activities. |
Our goal is to help you protect your assets and preserve your wealth by providing risk management solutions. As your insurance advisor, we are in a position to uncover warning signs that require the attention of professionals. Please contact your insurance advisor for a review of your unique situation.
