How will flooding affect our high net worth clients
Car insuranceWhether you live in a high-risk flood area or you are driving around the local roads, with winters in the UK becoming wetter and flood records being regularly broken, you need to check exactly what is covered in your high net worth (HNW) insurance policies.
If you left your car in the garage, parked on your driveway or driving it to the shops during a spell of rainy weather, any water ingress to the engine or interior of your car could lead to a costly claim to dry out and repair a high value vehicle.
Insurers recognise that flood damage from raised water levels while your car is parked (unavoidable damage) is different to making a decision to drive through a flooded road (avoidable). Your insurance provider may decide not to pay out on an avoidable claim, depending on the circumstances, if they consider it was reckless behaviour. To make a claim whether avoidable or unavoidable you will need to have fully comprehensive insurance, not just third party so this will not be a problem with your HNW insurance policy.
Our recommendations:Never drive through floodwater if you believe there is a risk that your engine may cut out or you are unable to see what lurks below the surface. Extra caution will be needed if you own a Turbo-charged diesel engine car, they are more vulnerable to water ingress and damage.
High net worth Family fleet car insuranceConsidering the fact that many high net worth clients live in areas on the outskirts of towns and often in rural areas with rivers and open fields nearby that are prone to flooding, having an insurance policy that meets your specific needs is vital.
High net worth insurance clients can take advantage of insuring all of their vehicles under one insurance policy. This can include other motorised vehicles such as quad bikes, boats and horseboxes that may also be parked on the premises.
This makes it much easier to make a claim under one insurance policy if worst happens and you find your property and garages destroyed or damaged by an insured loss.
If your main vehicle is worth more than £30,000, you can include all of your other motorised vehicles under the same policy. The main vehicle can be a modern high-performance prestige car, luxury saloon or a classic car.
Buildings and contents insuranceThough long periods of freezing temperatures are becoming less common in some parts of the UK, there are still times when cold weather can affect property and outbuildings. High net worth clients often live in larger older properties with pipework that can burst in freezing temperatures. A leak in a large property with expensive fittings and contents can lead to a big insurance claim. Unoccupied premises can also increase the risk, with HNW clients more likely to take long mid-winter holidays or spend time between more than one property.
Our recommendations:Make sure the property and water pipes are well insulated, especially lofts, cellars and outbuildings. Keep the temperature above 10°C while unoccupied and ask a friend or neighbour to check the property at regular intervals.
Keep the property well maintained throughout the year and identify and test your main stopcocks as they can seize up in older properties. Arrange for professional valuations to make sure you are not underinsured if you do have to make a claim following an insured incident.
Benefits of high net worth insuranceDue to the nature of HNW claims, there are many benefits to providing cover for all of your possessions and holiday cover under one tailored HNW insurance policy.
From dedicated claims handlers to specialist repairers, you can be confident that your insurance claims will be handled quickly 24/7, 365 days a year, anywhere in the world.
Your bespoke insurance will cover all your needs. Call 0121 321 4600 to discover how it works with one of our team of advisers or visit https://www.clarisksolutions.co.uk/insurance/lifestyle/high-net-worth-insurance to find out more.