What If Your Wealthy Clients Get Robbed?
Online shopping provides them insights into what HNW individuals purchase from their homes, which allows them to know what’s coming and when.
For example, orders from certain stores that sell high-value items come in small, unmarked vans rather than standard delivery trucks.
Thieves know which vehicles to look for and may follow the van until it reaches its destination.
They may then steal the package or even target the individual’s home for a robbery.
This trend, along with the type of observation the criminals in our purse collector example conducted, means your clients must have a greater awareness of their surroundings.
Insurers want to know what steps your clients take to protect their collectibles.
If your clients are watch collectors, the insurance company may ask if they have a safe and whether it’s bolted to the floor.
Do they wear their watches daily, or is there a rotation? The more details your client can provide about their security measures, the better.
Other risks to collectibles, such as losing jewelry in the bathroom or ocean, may also come up when discussing mitigation strategies.
3. Maintain stand-alone coverage.
Your clients should have a separate rider on their homeowner’s policy specifically identifying each item in their collection that needs replacing in the event of loss.
Valuable or collectible policies, valuable arts policies and scheduled jewelry coverage are options to consider for higher-valued items.
Make sure your clients inform their broker or agent when they’ve added a new piece to their collection that requires a separate policy.
This approach prevents coverage gaps due to homeowners’ insurance collectibles caps.
It may also be wise to consider getting a blanket policy in the form of an excess policy that covers all the collectibles in a client’s collection of a certain value.
Under this type of policy, any item in the collection that falls under a predetermined value of $50,000 is automatically covered after a loss.
And, unlike item-specific riders, there’s no need to update the policy each time the collection grows.
Smart Collectible Insurance Pays Off
As the collectibles market expands into new realms, so too do the risks associated with collecting.
Approaching client conversations with a thorough understanding of the risks and protection options can help you provide valuable guidance that will pay off for your clients in the long run.
With the proper insurance coverage in place, your clients can rest easy knowing their valuable collections are protected from the unexpected — and you’ll have strengthened their trust in your expertise.
