INSURANCE OF THE RICH AND FAMOUS

Top Ten Blind Spots That Can Break Your Bank AccountAll of a sudden, “risk” is a dirty word. The economic meltdown of 08 has left many high net worth individuals, once open to accepting reasonable levels of risk, now resetting their Risk Aversion Meter, tipping the scale to near zero. This is not limited to investments. Given that these individuals often own a wealth of assets–fine homes, horses, artwork, vintage automobiles– they have more at risk than the vast majority of Americans. And now they want to protect that risk more than ever before. To build a firewall around it. Basic homeowner’s insurance may cover damage to your property and liability if someone is injured, but without additional riders, chances are your artwork, wine collection, antiques, and even your household staff are vulnerable and at risk. “If your insurance broker is not firing away a zillion questions about every aspect of your life, a red flag should go up,” says Patti Clement, Vice President and Managing Director, HUB Private Client Advisors of HUB International Northeast. “Every client’s homeowners insurance policy should be customized based on a forensic analysis of their needs. Ninety percent of brokers don’t ask indepth, probing questions, which can leave homeowners underinsured or possibly not covered at all in many cases.” Because no two homeowners are ever the same, neither should their insurance policies be the same. A thorough broker will want to know the length and tonnage of your watercraft, whether you are a member of a public or private board, even the breed of your pets. Below is a list of the top ten things that are typically overlooked when it comes to Homeowner’s Insurance. Artwork/Fine Arts Basic homeowners insurance has limitations in regards to custom furniture, oriental rugs, antiques, light fixtures, glassware, antiques and more. While fire damage and theft may be covered under your regular policy, certain circumstances such as accidental breakage/damage or a “mysterious disappearance” are not. Further, you are likely to receive replacement cost under most standard policies, which typically only cover items at a single location, not second or vacation homes. Watercraft/Aircraft/ATVs (including golf carts) Recreational vehicles, including fractional ownership in aircraft, require supplemental coverage above what standard homeowner policies provide. Additional liability, coverage for crewmembers, and pollution liability for craft after a certain size are often overlooked. Household Staff Homeowners are generally aware that it is mandatory for full-time household staff to be insured under liability, worker’s compensation and disability coverage. But did you know that Employment Practices Liability Insurance Coverage (EPLI) protects you against wrongful termination and sexual harassment claims if an employee claims he or she is being harassed by a co-worker or even you while on your property? Directors & Officers Did your insurance broker ever ask you if you are a member of a private board or a public one? Ore whether or not you are compensated for your service? If compensated, the normal umbrella policy will NOT cover a financial loss. A D&O (Directors and Officers) Policy sits over the Board’s Policy, protecting you from any personal liability. Wine Collection Certain collectibles, including your wine collection, silver, or memorabilia is not covered by regular homeowners policies. An additional rider, even without a deducible, is not expensive and can be written to offer percentile increases in value each year. However, HUB International Northeast recommends that homeowners re-evaluate items’ every 3-5 years to ensure adequate coverage. Blanket coverage is also available for those who want a buffer but prefer to not have specific contents revealed. Farm/Ranch/Equine Race or show animals and particular breeds of horses are generally excluded under basic homeowners policies and require additional coverage. Further, homesteads with high volumes of acreage and “land exposure” are considered riskier. Adequate coverage must also be obtained for ranch hands, horse trainers and farm workers. Legal defense costs Though you hope tragedy never strikes, if forced to retain an attorney, chances are legal costs would far exceed the limits for most homeowner’s insurance policies. Trust Any living trust can have multiple owners through multiple foundations and the insurance protection can become complicated, especially because no one asks for proof of insurance at the time the trust is set up. Other Structures on Your Property Pool houses, guest cottages, rental properties, staff quarters, unattached decks, docks, fencing, in-ground pools, barns and other structures may not be insured under regular policies. Even if they are, coverage limits are typically very low. Uninsured and Underinsured Motorists Even if not your fault, you and your passengers may not receive the coverage you need after an auto accident if the other driver carries only limited coverage. If the other driver’s insurance has expired, Hit and Run Protection still protects you. Additionally, if one of your children gets into an accident and a passenger in their vehicle is injured, you are at risk of a lawsuit that could run into the tens of millions. HUB International Northeast recommends at least $5 million in liability coverage, especially if you have children of driving age. About HUB International Northeast HUB International Northeast, with its Head Office in New York, NY, currently has more than 700 employees working in offices throughout 12 regional locations in New York, New Jersey, Connecticut, Pennsylvania and Rhode Island. HUB Northeast is a full service insurance brokerage offering a wide variety of products and services in the following areas: property & casualty; employee benefit plans, administration & consulting; and personal insurance. As a leading brokerage in the New York tri-state area, the experts at HUB Northeast have been crafting quality insurance programs for businesses and individuals for over 55 years.