The range of covers in traditional home insurance policies is wide, but is even wider in the high net worth (HNW) arena. Defaqto analyses more than 120 directly comparable features in HNW policies for buildings and contents. It also examines pub, restaurant and hotel policies

Differentiating HNW products

When selling HNW products intermediaries may take into account items that are not so easily comparable, such as the reputation and financial strength of the insurer, and the quality of the claims service provided.

Whether the insurer is a GISC member is possibly of increasing importance to some customers.

The analysis here uses about 40 product features in buildings and contents cover.

Looking just at the building covers it is clear that there is a leading group of providers offering very good levels of cover.

Based on our criteria, Chubb Masterpiece and Oak Underwriting are almost inseparable, with Zurich Private Clients and the Norwich Union (NU) Tapestry policies close behind.

At the end of last year, high net worth specialist Chubb Insurance revamped its Masterpiece policy, with considerable changes to the cover.

Key buildings features of the Chubb policy include:

  • Extended replacement cost - no limit for sums insured - for total losses, if the sum insured was originally appraised by Chubb

  • Buildings cover on an all risks basis with sums insured index-linked

  • Alternative accommodation costs covered for up to two years from date of loss

  • Trace and access costs up to the buildings sum insured

  • Property owners' liability available up to £10m

  • No unoccupancy warranty

  • No excess payable on claims greater than £10,000.

    There are a few areas where other providers offer better levels of cover than Chubb. These include:

  • Standard excess of £250, when most providers have a £100 excess as standard (although in the HNW market this is unlikely to be an issue)

  • No automatic cover for permanent fixtures removed for cleaning or renovation

  • No cover for security upgrades in the event of a criminal assault in the home. NU and Oak Underwriting provide this cover.

    Contents cover

    The changes made by Chubb to contents cover bring Masterpiece to the top of the market. With Chubb and Zurich Private Clients established as the two leading products, a pack of insurers offering broadly similar covers trails a little way behind these two.

    Key contents features of the Chubb policy include:

  • Contents on worldwide all risks basis with automatic index-lining

  • No locks or alarm warranties and no unoccupancy period.

  • Public liability cover available up to £10m

  • Newly acquired contents covered for

    60 days; up to 20% of the contents sum insured; and newly acquired fine arts covered up to 25% of the fine arts sum insured

  • Unlimited cover for lock replacement with no excess on these claims

  • Loss of oil and metered water covered up to £5,000 each

  • Student belongings covered up to 10% of the contents sum insured

  • Garden contents cover (for trees, shrubs, lawns etc.) up to 5% of the contents sum insured

  • Home business property up to £10,000

  • No excess payable on claims greater than £10,000.

    Other providers offer better levels of cover in some areas than Chubb. These include:

  • Worldwide money cover limited to £2,500 and credit cards to £10,000 (Zurich offers £5,000 and £25,000 respectively)

  • Hole-in-one cover limited to £100 (NU offer £250 and Zurich £500)

  • Standard excess of £250.

    NOTES:

  • These charts use Defaqto's unique Data Numerical Analysis (DNA) scoring system

  • DNA illustrates the relative positioning of a product based on selected criteria

  • The criteria used in this chart are a representative sample only and may not be relevant in all cases

  • Other criteria are available and may give different results

  • When used to match products to a client's circumstances, DNA can show how closely a product matches those requirements

    • Topics