SWG ELITE – High-Value Homes: Making Sure Their Biggest Investment is Well Protected

Jul 2019

The high-value homes market segment is rapidly expanding. The clients who purchase coverage are typically known for their loyalty to the insurance professionals who work on their behalf. They’re also people who have worked hard for their properties and are willing to pay a premium to ensure they’re protected. This makes high-value homes a potentially lucrative sector for brokers. SWG is able to offer extended coverage to standard high-value homeowners. These include rebuilding provisions, full contents replacement, variable deductible levels, and more. Brokers can now provide tailored coverage to meet their clients’ individual needs with high-value policies, a range of coverage options and access to the expertise of SWG underwriters. This coverage applies to properties that do not fall into the “difficult to place” category.

Know the Insurance Considerations for High-Value Homes

Though difficult for many brokers to break into, this sector is changing as increased competition generates new options in the marketplace. Brokers can nurture a strong client base in this growing sector if they understand the risks better than their clients do. Here are top risks brokers should consider:

  1. Extreme weather events
  • Since 2009, nearly $1 billion in insured losses related to catastrophic weather events have been paid out annually. Most of these losses have been related to damages caused by water infiltration and flooding.
  1. Water infiltration and flooding leading to water damage
  • Accidental seepage or influx of ground or surface water through walls, doors, windows, foundations and other openings.
  • Homeowners can incur costs related to the tearing out and/or replacement of any part of the property because of the malfunction of their water main.
  1. Breakdown of expensive and critical home equipment
  • Swimming pools, air filtration systems, well pumps, chair lifts, elevators and other important systems could break down and create stress and financial hassle for the client when they need to be repaired or replaced.
  1. Property becomes uninhabitable
  • Damage can be so severe that the homeowner is forced to move out and pay for accommodation (e.g. hotel, rental property) and meals elsewhere.
  1. Home invasions, burglary, violent threats, kidnapping, stalking, abduction of a child, carjacking
  • Risk of damage to property or stolen property.
  • Risk of physical injury and psychological damage to the homeowner.

Going Above and Beyond Regular Homeowners Policy

As Canada’s aging population swells, more homeowners fall into the high-value category. Brokers have a responsibility now more than ever to provide access to the best products on the market. To do this well, brokers need a high-value homes insurance policy that offers unique coverages to provide better protection for homeowners. Here, SWG can offer brokers more comprehensive coverages based on emergent risks in the market. These coverages include:

  • Financial support in times of distress. Policy owners who have been the victims of a home invasion, violent threat or other harrowing ordeal get coverage for all costs related to their physical and mental recovery.
  • Any travel costs in the aftermath of the traumatic event, including tickets, accommodations and meals.
  • Medical and rehabilitation costs related to any treatment required after a traumatic event, such as stalking or kidnapping.
  • Costs for professional services if the homeowner needs to hire negotiators, interpreters, consultants and forensic analysts.
  • Any personal security costs should the homeowner feel the need to employ security guards or rent an armoured vehicle after a traumatic event. This includes costs related to home and vehicle security features, like burglar alarms in homes, cars and boats.
  • Access to advice around issues like personal security services, electronic identity protection and alarm systems design.

Having access to robust high-value policies means that once the damage is done, the insured won’t have significant financial costs to worry about. High-net-worth clients in this sector are looking for versatile and well-informed brokers on whom they can depend and, hopefully, invest their loyalty for years to come.