Luxury real estate comprises the top 5%-10% of properties in a local market. Most standard homeowners insurance policies are geared toward traditional assets, meaning policy maximums may limit personal replacement when filing a homeowners insurance claim for luxury homes.
Insurance agents have a unique opportunity to bring value in high-net-worth spaces, including insight and guidance. Homeowners in this space are not only more likely to have higher-value assets, but also ones that are harder to replace. Creating policies that cover art collections, fine-crafted jewelry, and recreational vehicles is crucial when working with high-net-worth policyholders. Writing policies with detailed inventory may be even more essential in ensuring higher-valued items are included in the insurance policy.
Those in a high-net-worth space may feel like they have fewer insurance options available. They’re likely to have goods-specific coverage questions that few other agents can answer. This puts insurance representatives in an excellent position to offer expert guidance on choosing the right policies to ensure maximum protection.
Loss prevention is also an essential requirement when working with high-net-worth clients. Guiding policyholders on ways to reduce risk and ensure maximum protection can result in a positive relationship for everyone. Building authoritative relationships is key to earning the trust and loyalty of homebuyers in this space.
Learning the unique insurance needs of luxury homes and goods can also help independent agents stand out. Contact a Quaker Special Risk insurance agent today for assistance with creating a homebuyer’s insurance policy in the luxury market industry.