With property prices across Australia soaring, gone are the days when owning a $1 million property made someone a high net worth individual.
So, what level of wealth – or values of assets – does a client need to have to qualify for high-net-worth insurance arranged by Mansions of Australia?
We’ll look at why it’s important for high-net-worth clients to have specialist insurance cover rather than off-the-shelf home and contents insurance.
Minimum sum insured values
Peter Wright, Senior Development Underwriter at high-net-worth insurance underwriting agency Mansions of Australia, explains that the minimum sums insured that Mansions will consider underwriting, are $2 million for buildings insurance and $300,000 for contents.
“However, there’s no ceiling, and we are comfortable underwriting larger exposures” he says.
He adds that on top of those minimum sums insured, most Mansions clients have a collection of some kind, whether it’s jewellery, fine art, wine, a combination of both, or something else.
Standard property insurance versus high-net-worth insurance
The difference between home and contents cover from a mainstream insurer versus high-net-worth cover arranged by Mansions, is akin to buying off-the-shelf clothes versus those that are made-to-measure.
“Mainstream home and contents insurance includes defined events cover that will cover basic perils plus accidental damage, but nothing much else,” Peter says.
“High-net-worth individuals live a different lifestyle, and their insurance, needs to take that into consideration. In this space, we are often looking at higher sub-limits, contents, and valuable items being covered outside the home. We also have the ability to tailor cover to meet their needs.”
Clients that are new to high-net-worth insurance will often have a lot of questions. Insurance brokers can add value by speaking to their underwriter to understand the policy terms and conditions, and proactively articulating these messages to the client.
Additional benefits
Peter says the Mansions Executive Insurance policy includes Family CyberSecure, a personal cyber cover that provides protection against loss from common cybercrimes.
“High-net-worth people are typically early adopters of technology,” he says. “So having appropriate cyber cover, which is an extension of insurance cover for more than the bricks, mortar and contents, is appropriate for this segment of the market, and a defining difference.”
For more information
For more information about the unique products and service, please contact our account brokers on (02) 9587 3500 or email the team at reception@wsib.com.au.
Source: QBE Insurance.
The Mansions Executive Insurance PDS is issued and underwritten by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545) (‘QBE’). SGUAS Pty Ltd t/as Mansions of Australia (ABN 15 096 726 895, AFSL 234437) (‘Mansions’) is authorised to distribute this product on behalf of QBE acting under its own AFSL. Any information contained in this document is general advice only and has been prepared without taking into account your client’s objectives, financial situation or needs. Your client should read the Mansions Executive Insurance Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which can be obtained by contacting Mansions on 1300 738 308 or visiting www.mansions.com.au before deciding to acquire, or to continue to hold this product.
