With warmer temperatures, chirping birds and longer days, spring is in the air, and often, the season comes with housecleaning and yard work to start fresh after a long winter.
While many are spring-cleaning their homes, it is also a good time to do some financial spring-cleaning. For insurance agents, this is an opportunity to encourage High Net-Worth clients to revisit an often neglected aspect of financial planning—their home, auto and other insurance policies.
The right insurance coverage can protect HNW clients against million-dollar lawsuits, property losses and damages from natural disasters. In order to safeguard HNW clients' assets, David Spencer, senior vice president of ACE Private Risk Services has released several tips that insurance agents can provide for their HNW clients to add to their spring-cleaning routine.
"As families take advantage of the sunny days and warm weather to begin their annual spring cleaning, insurance agents should remind their high net worth clients to incorporate insurance and financial planning into their spring cleaning routine" said Spencer. "For wealthy households, this is an opportune time to revisit home, auto, valuables, umbrella liability and other aspects of their personal insurance programs."
"Too many fail to review their policies annually, letting their coverage grow increasingly out of sync with their assets and lifestyle. As a result, high net worth clients are likely overpaying for coverage that still leaves them exposed to severe financial loss due to high-stakes lawsuits and natural disasters," Spencer said.
Click through the following slides for ACE Private Risk Services' 4 Tips to Help HNW Clients Spring Clean their Insurance.
Help clients understand their needs
As clients de-clutter and file their paperwork, they should also take time to review their insurance policies to ensure that they have adequate coverage and that the beneficiary information is up-to-date.
Encourage clients to consult with their agency, as agents and brokers can help clients determine what is appropriate coverage depending on the age, assets and lifestyle of a client.
Make sure your clients aren't overpaying to be underinsured
A recent survey by ACE Private Risk Services found that wealthy families often over-pay for insurance coverage, a trend that has worsened since 2010.
Families can manage, or even reduce, their premiums by being proactive. Help clients take control of their coverage by encouraging them to take the following steps:
- Increase their homeowners' deductibles
- Install preventative measures such as burglar alarms and water leak detection systems to earn safety credits
- Bundle policies with one carrier
- Move artwork and other collectibles from home contents to valuables coverage
Encourage clients to document their personal property, especially valuables
Homeowners can best protect themselves if they have access to a comprehensive view of their tangible assets, including fine art, jewelry, wine and other valuables.
Agents can encourage clients to take an inventory of their high-value items and move forward to best protect themselves against potential losses. Moving eligible items to a valuables coverage policy can reduce costs and strengthen protection, but homeowners first need to inform their agents what needs to be protected. By documenting their high-value items, clients and insurers can have a more productive dialogue about coverage.
Schedule an annual insurance "checkup"
Agents know that one of the best strategies to help clients better manage their premiums is to have regular consultations with clients. Encourage HNW clients to have periodic "checkups" to reevaluate their situation.
Not only will this help clients in the long run, but it will also show clients that their agent is concerned with their best interests, building rapport and potentially leading to retention and even referrals.
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