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The Specialized Risk Profile of High-Net Worth Homeowners

By March 19, 2018 April 1st, 2019 No Comments

High-Net Worth (HNW) homeowners have unique risks that are associated with their homes. Considering the very unpredictable nature of their liabilities, it is crucial that homeowners pay close attention to certain aspects of their homes and have insurance coverage to account for their increased risks. Obtaining the proper insurance is especially important, and High-Net Worth insurance is readily available to those in the state of Delaware with IFS Insurance. In addition to obtaining the right coverage, homeowners should be aware of the following exposures.


If undergoing a major home renovation, than the family’s insurance agent should be involved throughout the planning stages. They must review the breadth and quality of the contractors’ and subcontractors’ insurance policies. The agent also needs to review the family’s current insurance policies.

The main goal is for the homeowner to be assured that any construction-related problem that takes place during the renovation is the contractor’s responsibility. Be sure that you, the contractor, and the firm’s insurers are all on the same page if something were to be damaged, go missing, or if anyone is injured at any point throughout the work. It should be up to the contractor and the firm’s insurers to take care of these concerns.

Discussing this goal with your insurance agent before any renovation begins will clarify whether or not the potential contractors’ and subcontractors’ protection policies are enough to address potential losses. There is always a risk in any renovation process.

Specialized Risks

Some coverage can fall short for those who custom-built their homes, due the home value surpassing the conventional amount of coverage that contractors carry. High-Net Worth insurance comes into play for these types of cases.

There are many cases in which a contractor has caused a much greater amount in losses then what they hold in insurance. Sometimes an agent may request that wording in the contractor’s policies names the homeowner as an additional insured.

Policies could include standard language stating that all of the contractor’s clients are considered additional insureds without naming each one, because a contractor is likely to have many clients throughout the policy term.

Pay attention to aggregate limits of coverage for each individual project when reviewing the coverage amounts. There are possibilities that you will not want to risk. For example, an incident of the contractor’s other jobs could take over the coverage left for the work on your home.

High- Net Worth homes require special attention. Be sure your home is properly insured for its specialized risk profile.

For these homeowners of Delaware, it would be in your best interest to acquire High-Net Worth insurance.

About IFS Insurance

At IFS Insurance, we specialize in protecting homeowners and renters throughout Delaware, New Jersey, Pennsylvania, and Maryland. Our quality solutions and commitment to excellence has allowed us to serve these states for over 50 years. For more information about our products, we invite you to contact us today at (800) 598-0420.