Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

Don’t Be Afraid to Write High Value Homes — Product Highlight

Published on June 23, 2015

wholesale homeowners insurance California

photo credit: night via photopin (license)

When it comes to writing high net worth business, High Value homeowner’s coverage is one of the most important products. Sometimes these policies can be complicated for insurance agents to understand and feel comfortable with, though, because they have more components than a typical personal lines homeowner insurance policy.

It’s not just the expensive residences themselves that have more intricacies, custom finishes, specific materials and construction methods etc., but high net worth clients regularly have more items in their homes that need to be covered like jewelry, fine art, coin collections, and others that may need to be scheduled.

Because these High Value homeowner insurance policies are admittedly more complicated, they need to be handled carefully and thoroughly, especially in a litigious state like California. That is what makes many agents shy away from this type of business, but it doesn’t have to be that way.

While these policies are complicated to write, and in our beautiful California state, there is a significant market universe for you as an insurance agent to write this line of business. These high net worth clients will often return to you with other lines of business for you to write if you have handled their home well. While personal lines might not even be your main focus as an insurance agent, learning how to market for and cover these High Value homeowner risks well, can lead you into the kinds of business you do focus on in lucrative ways.

Here’s a couple of practical tips from Meghan Fitzgerald, our High Value homeowner expert and personal lines team lead here at Abram Interstate:

  • Disclose any type of quirks or strange situations occurring in the homeowner even if you might not know how to deal with it. It’s better to disclose it up front so we can make sure it gets properly insured than having to go back later after an inspection and deal with it then.
  • Our policies for High Value homes have different sub limits for different categories of items (i.e. limits on jewelry, fine arts, and coins). These items really should be scheduled. If the insured does not want to schedule items, we suggest that you as their insurance agent at least inventory the items with the customer. If the customer doesn’t want to schedule some of these belongings, have them sign some a disclosure/waiver saying they know coverage may not be provided for these items. This will make sure your customer understands exactly what is covered in the event of a loss.

The complexities of insuring High Value homes is understandable, and many agents tend shy away from writing this type of business.  But we at Abram Interstate are here to help you secure the kind of High Value home insurance coverage these homes need, and we think you can handle these risks well with the right attitude and effort. It’s a viable market in this state, so start marketing for it now.

 

Our Wholesale High Value Homes Insurance Product

  • Limits from $1,000,000 to $50,000,000
  • HO-3 form with extended replacement cost
  • 70% personal effects coverage
  • Personal Injury
  • In and Out Servant coverage available
  • In home business coverage available
  • Ordinance or Law
  • Scheduled Personal Property
  • Wrap around policies
  • Umbrella
  • Personal article floater

Chat with us online for eligibility requirements or a brush check.  Flexible Payment Options Now Available.

Send in your ACORD Homeowner Application to apps@abraminterstate.com today!


Abram Interstate Insurance Services, Inc. is a California wholesale insurance broker (CMGA) that has licensing and expertise to place business in both admitted and non-admitted markets for personal lines insurance and commercial lines insurance in California and surrounding areas.

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