When your combined personal property value exceeds R4 million, a Standard Insurance policy may leave significant gaps in your insurance protection.
Understanding the distinction between cover types is essential for safeguarding your valuable assets.
All Risks vs Insured Events
Standard insurance policies typically operate on an “Insured Events” or “Insured Perils” basis, covering only specific listed perils.
Consider these scenarios:
- A massive boulder rolls downhill and destroys your luxury home
- A smart home controller malfunctions due to an accident while you are abroad, damaging your temperature controlled wine collection
- A power surge destroys valuable electronic equipment throughout your home
Under a Standard “Insured Events” policy, these incidents may not be covered unless explicitly listed. Even when covered, payouts are often significantly limited to predefined sums insured.
“All Risks” cover provides substantially broader insurance protection, essentially covering accidental loss or damage unless specifically excluded, without restrictive limits on insured items. For individuals with assets exceeding R4 million, this comprehensive cover prevents exposure to significant uninsured financial losses.
Standard Insurance Policy Limitations
Standard Insurance products are designed for average sized properties and contents, with notable constraints:
- Coverage limited to specific listed events
- Sub-limits on claims that may not reflect the true value of premium items
- Accidental damage often excluded, limited or available only with additional premium
- Call centre service rather than personalized attention
- Car Hire usually not included automatically
- The Average (Underinsurance) clause reduces claim payments proportionally
High Net Worth Insurance Benefits
Specialized policies for High Net Worth individuals offer comprehensive protection. Key benefits include:
- No proportionate Underinsurance (Average) clause to reduce claim payouts
- Automatic 30 Day Car Hire inclusion
- Worldwide All Risks cover for personal effects
- Extended Personal Liability protection
- Complimentary risk assessment of primary property and assets
- Premium services including concierge support and emergency assistance
- Competitive pricing compared to multiple standard policies
- Asset All Risks cover up to limits you select, without itemizing individual possessions
- No excess for clients over 55
- Specialist coverage for fine art. collectibles or high valued cars on an agreed value basis
Signs You Have Outgrown Standard Insurance
Consider specialized high net worth cover if you have:
- Multiple properties, luxury vehicles or classic cars
- Several assets specified under an All Risks section
- More than one personal insurance policy
- Residence in a security estate
- Fine art or collections requiring specialized valuations
- Designer contents or furnishings
- High value jewellery or similar assets
- A proportional Underinsurance (Average) clause in your Building or Contents sections
- Combined personal assets exceeding R4 million
- Reliance on call centres rather than a dedicated Risk Advisor familiar with your needs
Critical Questions
To evaluate if your current policy meets your needs, ask yourself:
- Does your policy automatically cover accidental damage?
- How would your insurer respond to loss relating to non-commoditised assets like art/ and collectables?
- Can you reach a dedicated claims specialist and Risk Advisor?
- Do you have Emergency Assist Services 24/7?
- Would Average (Underinsurance) not apply to your insured assets?
Your current cover likely falls short if you answered “no” to any of these questions.
Don’t Compromise
Standard Insurance policies are designed for standard homes.
When you own luxury property, live in a security estate or possess high value contents, your cover should align with your asset profile.
High Net Worth Insurance provides enhanced benefits, broader cover and personal service through a dedicated Risk Advisor. This specialized approach ensures your premium assets receive the comprehensive protection they warrant, rather than treating exceptional items as ordinary possessions.
Next Steps for Discerning Private Clients
- Review policy documents for Underinsurance (Average) clauses and sub-limits
- Benchmark your cover against true “All Risks” High Net Worth policies
- Consult a professional Risk Advisor who has access to premium insurance products
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