A recent ACE Private Risk Services survey found that families are typically overpaying for unneeded insurance coverage—and that trend has only been getting worse since 2010.

High-net-worth clients are particularly susceptible to this trend, often overlooking savings opportunities. More than half of insurance agents surveyed by ACE say rebalancing their personal insurance portfolio can help reduce clients' premiums while still strengthening insurance protection.

Here are five strategies ACE recommends agents share with high-net-worth clients on how to better manage and possibly reduce insurance premiums.

1. Increase your homeowners and auto deductibles.

Many financially secure people only carry deductibles of $500 or less, and file claims for much more than that amount because they can afford to absorb smaller losses and worry their rates will increase. Instead, ACE recommends insureds raise their deductibles to gain substantial savings.

For example, on a $1 million home, a homeowner could save $900 a year by increasing the deductible from $500 to $2,500. ACE says homes it usually insures typically file an insurance claim about once every 20 years, making the trade-off between a higher deductible and lower premiums a wise choice.

2. Safety credits for preventative measures.

ACE offers credits on premiums when homeowners install safety devices like burglar alarms, water leak detection systems, battery backups for sump pumps, and automatic standby generators. Combined, these credits could reduce premiums by up to 30% or more. In other cases, safety measures may enable customers to waive coverage and save.

3. Bundle policies with one carrier.

Spreading home, auto, boat, and liability policies across different carriers can increase potential gaps in coverage. When placing multiple policies with one carrier, customers can take advantage of package discounts of 10% or more.

4. Move artwork and other collectibles from home contents to valuables coverage.

Collections of antique furniture, oriental rugs, and rare books may be insured as personal property under a homeowners policy. However, ACE recommends insuring items like these with a valuable policy to reduce costs and strengthen protection.

5. Schedule an annual insurance checkup with agent.

Regular consultations between an agent and insured are perhaps the most important strategy to better manage premiums. Many people neglect to do so as they accumulate substantial assets and don't realize they're overpaying to be underinsured until they suffer a significant loss.

Special Reports /

5 Ways to Reduce Insurance Premiums for High-Net-Worth Customers

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