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The COMPLETE Guide to Private Client Insurance

private client insurance explained

If you compare standard insurance policies from broad-market companies, beneath the marketing slogans, you’ll find many policies are similar. Often, they share the same limitations, capping coverage limits for homes and personal liability insurance.

Broad market policies address the needs of average households. But high-net-worth families have more to protect, making standard policies an imperfect solution.

Private client insurance expands on the coverage provided by traditional insurance by bringing higher coverage limits, more flexible policy options, and available coverage for additional risks unique to successful households.

Private Client Insurance: Key Takeaways

  • Private client insurance protects homes with a rebuild value of $1 million or more, but also protects valuables and personal liability risks, while considering your entire lifestyle.
  • Private client insurance isn’t a single policy, but rather a personalized insurance package that brings together key insurance policies to protect high-net-worth households.
  • Specialized coverage designed for successful households can be more cost-effective while also offering better overall protection.

What Is Private Client Insurance?

Designed for households with more assets or more valuable assets, private client insurance is specialized insurance that can include several types of policies, including coverage for high-value homes, fine autos, personal liability, and more.

A handful of high-value insurers have adopted the term within their branding, including AIG Private Client, but private client insurance doesn’t refer to a particular company or even a type of policy. Instead, a private client insurance package brings together multiple policy types, as needed, with liability insurance and protection for high-value assets at its core.

Who Needs Private Client Insurance?

Standard home insurance often caps insured value of homes at $750,000, also limiting liability coverage to lower amounts, usually $500,000. Often, coverage limits for household belongings on standard policies also come in lower, capping maximum coverage at a percentage of the home’s insured value.

High-net-worth households need higher coverage limits than a standard policy provides, but these families also benefit from the additional flexibility offered by private client insurance.

To keep coverage more affordable for average homeowners, standard policies restrict both coverage limits as well as the types of risks covered. While cost-effective for broad-market households, this approach can leave troubling gaps in coverage for high-net-worth individuals and families.

Private client insurance addresses the weaknesses found in traditional policies, bringing flexible coverage and customizable limits that let you focus your protection where you have the most risk. High-value insurance considers the unique needs of successful families and high-net-worth individuals. Most insurers in this category offer coverage for homes with a rebuild value of $1 million or more.

private client insurance policy holder

What Types of Coverages Can Private Client Insurance Include?

Private client insurance addresses the coverage needs of successful households and can include several types of property and personal liability protection. While your insurance package can safeguard against risks in many areas, private client insurance makes liability coverage the common thread, weaving your policies together to provide the best protection.

  • Uncompromising coverage for high-end homes
  • Protection for second homes and vacation homes
  • Insurance for aircraft, yachts, and watercraft
  • Fine art coverage and protection for antiques and collectibles
  • Protect jewelry, watches, and valuables
  • Coverage for floods, earthquakes, hurricanes, and wildfires
  • Personal liability limits up to $50 million or more
  • Liability coverage for fiduciary liability or not-for-profit director liability
  • Coverage for domestic workers and employment practices liability
  • Kidnap, ransom, and extortion insurance
  • Identity theft coverage
  • Overseas travel insurance

Each household enjoys a unique lifestyle, making customization key to effective protection. Your private client insurance focuses on your distinct needs and priorities, while offering the ability to change and grow as your needs change.

High-Value Home Insurance

If your home’s rebuild value is $1 million or more, you can benefit from the enhanced coverage provided by high-value home insurance. A high-value policy considers every detail of fine homes, providing unparalleled protection to rebuild if disaster strikes.

On many policies, you’ll have the option of guaranteed rebuild cost, even if the cost of rebuilding exceeds your coverage limit. Some policies also offer the option of cash settlements, giving you the freedom to rebuild when and where you choose, or to use the funds for another purpose.

Coverage for Luxury Autos and Collections

Enjoy exceptional coverage for fine autos and auto collections. Combine your auto liability protection with your home and other policies to safeguard your lifestyle at the lowest rates possible. Private client policies let you customize your protection and offer more options with higher coverage limits compared to traditional policies.

Coverage for Boats, Yachts, Watercraft, and More

Whether your lifestyle includes watercraft, aircraft, or automobiles — or all of the above, private client insurance offers coverage solutions tailored to your unique lifestyle. As with other high-value policies, your coverage is designed to fit together seamlessly, each policy purpose-built but part of an overall insurance strategy.

Personal Liability Insurance for Your Family

Home policies protect homes and auto policies protect autos. These and other types of specialized private client insurance policies excel at protecting your property. But these specialized policies come together to insure your personal liability risks, which is the biggest concern for many high-net-worth.

Extend your personal liability protection with excess liability coverage that offers a cost-effective way to expand limits or with an umbrella policy that bolsters protection limits while broadening coverage for additional risks. Personalize your insurance to match your exposure and your priorities.

Risk Management and Consulting

The most effective way to protect against losses is to prevent losses when possible. Private client insurance brings risk management consulting as an added value, helping to understand where you may have existing risks and what steps can reduce or eliminate those risks.

private client insurance for homes

Top Insurance Companies Offering Private Client Insurance

A select group of insurers rises to the top when considering private client insurance choices.

AIG Private Client: Although founded in 2000, AIG Private Client has its roots in AIG, a trusted company that’s been protecting families since 1919. Today, nearly 40% of the wealthiest US households count on AIG Private Client to insure their homes, boats and yachts, collections, and more.

Chubb Prestige: Chubb’s timeline dates back to 1792, evolving to meet the needs of a changing marketplace. Today, Chubb is the largest publicly traded property insurer and its private client division, Chubb Prestige, has become one of the leading providers for the high-value market. Expect concierge service and policy options specifically designed for financially successful households.

Pure High-Value: PURE policyholders aren’t just clients. As a PURE policyholder, you’re a member, a structure designed to provide ample reserves for claims while returning excess premiums to members whenever possible. PURE’s focus lies solely with high-net-worth households, making PURE uniquely positioned to protect the success you’ve built.

Cincinnati Insurance: With one of the highest claims satisfaction ratings in the business, Cincinnati has proven its commitment to outstanding customer care. Cincinnati’s renowned Executive Capstone Program provides customizable coverage options to protect your home, assets, and lifestyle.

NatGen Premier: Available exclusively through specialty insurance agencies, NatGen Premier offers coverage tailored to the needs of high-net-worth families. Consider NatGen’s Premier Package, which combines home, auto, and liability coverage, bundling your policies to earn additional discounts. You can also choose and customize individual policies to build your own personalized insurance package.

Design a Customized Private Client Insurance Package

Successful households have specialized coverage needs. The team at Coastal Insurance works with high-net-worth households nationwide to provide coverage solutions at the best prices possible. Reach out to our experienced advisors to learn how a well-designed high-value insurance package can protect your home and assets while also saving you money.

Connect with our concierge team of private client insurance advisors to learn more about the best ways to protect your home and lifestyle. Our team of state licensed insurance advisors will help you compare rates from the finest insurance luxury home insurance companies like ChubbPureAIGCincinnati, and National General.

About the Author

David W. Clausen is the CEO of Coastal Insurance Solutions. With over 20 years’ experience and over 1 billion insured, David and Coastal Insurance Solutions are the recognized leaders in high net worth insurance.  For the third consecutive year, David Clausen has been awarded Top Producer by Insurance Business America . David is a trusted high net worth insurance expert who’s published more than 200 articles. His articles & press releases have generated over 500K pageviews and has been featured on blogs such as Google News, Yahoo Finance, CNBC, Market Watch, Fox, The New York Times, etc.  David founded Coastal Insurance Solutions in 2001 after earning a BBA from the State University of New York College at Oswego.

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