keeping expensive jewelry stored in a safe or bank vault.
The high-net-worth market is also underserved by insurance companies. Think about how many insurers offer homeowners insurance in your state, and then how many of them will insure a $ 20 million home. Certainly, if there was more competition in this market segment, homeowners would benefit with the resulting lower rates. Value Versus Price
Although many insurers are commoditizing their insurance products with their television advertising, the deciding factor should be the value of the insurance product, not the price. Yes, high-net-worth clients want to pay less for a product just like anyone else, but the concern should be about the value, and this is where the agent earns his or her money. As a trusted advisor who manages the everyday risks of your clients, the“ price” word should not be an important part of the conversation.“ Needs, solution, and value” should be a mantra by which a trusted advisor lives. Value Of The Umbrella
Agents who offer umbrella coverage to every client typically earn more than agents who don’ t. They understand the liability limitations on a homeowner’ s policy and the need to offer more protection. Not all, however, understand how to calculate the need, and in many cases, they may leave their clients insufficiently protected.
To calculate an umbrella limit, the agent must ask their client for the total amount of at-risk assets( assets that the insured can be forced to liquidate) and then quote the umbrella for at least that amount. Anything short of that number leaves clients exposed. The high-value homeowners program provides umbrella coverage far beyond standard personal umbrella coverage and will meet the needs of most high-net-worth prospects and clients. Why Build Your High-Net-Worth Client List?
From an insurance standpoint, there are several attributes that make working with high-net-worth clients enticing to an agency:
1. Their need for higher limits is significantly greater, which may result in higher premium dollars.
2. Affluent customers tend to have very full schedules and would
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