Almost three quarters of brokers believe there is a problem with HNW customers being underinsured

Being underinsured is a bigger risk (30%) for high net worth (HNW) customers than burglary and theft (20%), according to the latest research from specialist insurer, Ecclesiastical.

The insurer’s research surveyed 100 brokers that place business for HNW clients via interview between February and March 2022.

Results showed that almost three quarters (72%) of brokers believed there is a problem with HNW clients being underinsured.

Sarah Willoughby, art and private client business director at Ecclesiastical, said: “Underinsurance has always been an in issue in the HNW sector, but now, set against a backdrop of rising inflation, it’s more important than ever that brokers are speaking to their high net worth clients to ensure they are keeping valuations up to date.

”As inflation and the cost-of-living soars, the prices and values of many precious items are also increasing rapidly.

“While HNW clients may have existing valuations, these can quickly get out-of-date. Underinsurance continues to be a key issue facing high net worth clients and our latest research has found brokers believe it’s an even larger risk than theft or burglary.”

High end watch value rising

The Covid-19 pandemic, rising inflation and limited supply has meant that the value of luxury high end watches such as Rolex and Patek Philippe timepieces has soared.

The average price of a pre-owned Rolex watch is now £25,995, according to Goldsmiths jewellers. 

Ecclesiastical has launched a new enhanced HNW home insurance product that includes cyber damage, cyber-crime and online liability cover as standard with optional additional covers including business cover and travel insurance.

The new enhanced art and private client policy will replace the insurer’s existing product for new business and renewals from 12 September 2022.