Insurance Questions High Net Worth Families Should be Asking

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Years ago, an oil-filter company produced a brilliant ad featured an auto mechanic reminding car owners that investing a small sum to replace their filters regularly would reduce the need for expensive engine repairs down the road. It concludes with this pithy yet often ignored life lesson: “You can pay me now, or you can pay me more later.”

With the rising cost of many forms of insurance, this important lesson serves as a reminder that, just like preventive auto maintenance, prioritizing short-term savings over securing quality insurance protection from large and costly losses is an ill-advised strategy. There is a better way.

Rather than reducing insurance costs by foregoing important insurance protection that exposes your assets to uncovered losses, we recommend several strategies to help make quality insurance solutions more cost-efficient.

What follows is a short list of just a few of the questions we use to help those we serve to examine solutions for the wide range of uncovered losses that can arise when prioritizing cost reduction over long-term protection.

  • Am I covered if my nanny/housekeeper/other domestic employee is injured while working?
  • What other risks can expose my assets or threaten my family’s safety when employing domestic help?
  • What coverage do I have to protect me from third-party lawsuits that may arise due to my volunteer activities or for a seat I hold on a board of directors?
  • What risks am I covered for when I travel abroad? What am I not covered for?
  • Am I covered for the additional rebuilding costs required to comply with current building/zoning laws after a covered loss?
  • Given my lifestyle, how much liability insurance protection should I secure?
  • What types of risks occur when my children are away at school?
  • If a wildfire or other natural disaster were to cause widespread damage, causing rebuilding costs to rise, will there be enough coverage to rebuild my home?
  • If my vehicle is badly damaged in an accident, can I select the repair facility and insist on replacement parts from the original manufacturer?
  • What loss prevention or safety measures are available to help me control the cost of my coverage?
  • If I have a fire and I don’t want to rebuild my house, can I elect to take the insurance settlement in cash?
  • What coverage is in place to protect me and my family members when working from home?
  • Am I covered if I rent a car? If I rent a car while on a business trip?
  • What protection do I have if my identity is stolen? What steps can I take to better protect myself am my family from cybercriminals?
  • How can I protect my collectibles at a cost that makes sense?
  • What are the risks that arise during a home renovation or remodeling project, and how can I manage them?

There are two ways to identify the uncovered losses waiting to be discovered in your personal property and liability insurance program.

  1. Wait until a loss occurs to learn whether it is or is not covered.
  2. Participate in a comprehensive review that evaluates your current insurance program to identify the property and liability losses you are and are not covered for.

Too often, consumers who have prioritized savings over protection discover after a loss that the insurance coverage they purchased does not provide the level of protection they expected to receive.

Reach out to us to discuss available strategies to improve the cost-efficiency of quality insurance coverage that properly protects your assets.

The Mahoney Group, based in Mesa, Ariz., is one of the largest independent insurance and employee benefits brokerages in the nation. Contact us at or 480-730-4920.

This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.

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