12 Insurance Questions for High Net Worth Families

investopedia.com

70 NEWS JAPAN - Many high net worth families fail to adjust their insurance portfolios to protect their assets as their wealth grows. This is not uncommon as life has a way of getting very busy. A lot of people think once they have an insurance agent who has set up a comprehensive insurance program, it is on auto-pilot. But life happens and things inevitably change, thus it makes sense to review and update your insurance program to make sure you in fact actually have comprehensive insurance coverage.

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Simply put, comprehensive insurance typically includes home insurance, auto insurance, collector car insurance, boat (yacht) insurance, valuables insurance and umbrella liability insurance. In some cases it can also include workers' compensation and employment practices liability insurance, cyber insurance, and directors and officers insurance. There are even more types of insurance, but this list gives you a good idea of the types of insurance I am referring to.

Most entrepreneurs, business owners, and high net worth people understand the concept of risk. They have almost certainly taken a high level of risk while working to increase their wealth and assets over time. They also understand that it makes sense to minimize their downside by insuring against risks. Insurance is not exactly fun or sexy to talk about, yet one of the first questions people ask when something bad happens is, "Is it insured? Am I covered?"

Although I am not licensed to help people with this type of insurance, it is certainly a topic of conversation when building a financial plan. I work closely with a select group of insurance professionals that understand all the nuances of comprehensive insurance and make sure to bring them into the planning process should a client have potential needs or simply to conduct a thorough review of their current coverage.

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In working with entrepreneurs, business owners, high net worth families and insurance professionals, I have learned that there are some specific questions people should be asking when reviewing or considering changing their comprehensive insurance coverage.