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6 Signs You May Have Outgrown Mass Market Insurance

Mass market insurance from companies like Farmers, AllState and Progressive may work for some people, but high-net-worth individuals and affluent families require an elevated level of insurance assessment, coverage and risk management. We often find that many successful individuals are unaware they’re underinsured.

From limited coverage options to poor customer service, we’ll explore the signs that it’s time to switch to an insurance provider offering more tailored coverage and support. 

What is Mass Market Insurance?

The insurance industry in the United States is worth a staggering $1.4 trillion

Mass market insurance caters to individuals who have average incomes and limited assets. This type of insurance provides basic coverage at an affordable price. 

Clear Indicators It’s Time to Upgrade from Mass Market Insurance

While mass market insurance can be a great option for some or in certain stages of life, specific factors warrant a need for customized Private Client coverage. Below are some of the common signs that indicate you have outgrown mass market insurance:

1. Your insurance needs have changed drastically

As you go through the different stages of life, your insurance needs will likely change. For example, standard homeowners insurance for a starter home valued at $400,000 makes sense–however, when you move into a home valued at $1 million or above, high-value home insurance is essential in protecting this major investment and asset. 

As you accumulate more assets, your insurance needs become more complex. Suppose you own valuable jewelry, art, and other collectibles or run a successful business. In that case, it’s essential to have specialized insurance coverage to protect your assets and safeguard against potential risks and liabilities.

2. Your insurance agent isn’t asking seemingly invasive questions 

If your current agent isn’t inquiring about your net worth, your investments, and your lifestyle–the policy they have in place for you is likely leaving you underinsured. Though it may feel slightly intrusive, a true risk assessment evaluates every single aspect of your life, from your wealth to liabilities like teenage drivers, dogs, and household employees.

3. You have valuable assets to protect

If you own significant assets such as high-value homes, exotice vehicles, horses, multiple properties, or valuable collector items like art and jewelry, it’s crucial to have specialized insurance coverage to protect your assets adequately. 

This is especially important for high-net-worth individuals who may require additional coverage options, such as umbrella insurance, to safeguard against potential risks and liabilities.

4. You have a negative claims experience

If you’ve had a negative claims experience with your current insurance provider, it may be time to seek out a new one. Mass market insurers may lack the resources to handle complex claims efficiently or prevent denied claims. 

By working with a specialized insurance provider, you can receive more personalized attention and have the peace of mind of knowing that your unique needs are being addressed with greater care and attention to detail.

5. Your risk exposure has increased

If your level of risk exposure has increased, it’s important to consider obtaining a customized insurance policy to ensure that you have the right level of protection. 

For example, suppose you’ve recently invested in real estate or started a new business. In that case, specialized insurance coverage may be necessary to address the unique risks and liabilities associated with these ventures. 

Or, you purchased a personal plane or yacht. 

Mass market insurance policies are unable to offer the level of coverage needed to adequately protect your assets, making Private Client insurance the nessecary choice.

6. You want a more personalized coverage

If your insurance needs are specific and unique, obtaining personalized coverage can provide the ideal solution. 

For example, if you own an exotic or classic car that appreciates over time, unlike standard vehicles–specialized insurance coverage is necessary to ensure proper protection. It may also be advantageous to obtain coverage based on the agreed-upon value of the car rather than its actual cash value to account for the vehicle’s worth.

Benefits of Upgrading to Private Client Insurance 

Upgrading to private client insurance provide benefits that are hard to miss. Below are some of the most significant:

Tailored to fit your unique needs

Private client insurance is highly personalized–allowing you to select coverage tailored to your specific exposures and risks. This ensures you are adequately protected and all you’ve worked so hard to build is safeguarded against risk and loss. 

Increased peace of mind

When you have private client insurance from the nation’s most prestigious high-net-worth carriers including Chubb, Vault, Pure, and AIG, you will have peace of mind knowing you have ample coverage to protect everything you love.

Reduced risk exposure

High net worth individuals have more to lose than most in cases of liability. Life doesn’t happen without accidents, but without proper liability or umbrella insurance in place, a car or boating accident or an injury on your property could result in devastating financial implications. 

Access to more coverage options

Private client insurance is the gateway to the most prestigious insurance carriers who are well versed in the unique needs of affluent lifestyles and effective proactive risk management. This means you have access to higher limits, cash payouts, and unique coverage not offered anywhere else. 

Better communication and service

Private client insurance offers concierge level service that is more attentive and responsive. This ensures you will have a great experience when dealing with claims or emergencies. 

How to Upgrade Your Insurance

Upgrading your insurance policy is recommended to ensure you are adequately protected. Keep in mind the following essentials when upgrading your insurance:

Assess your coverage needs

Consider the types of risks you face, including teenage drivers, swimming pools, horses, household staff, and valuable assets. Work with a broker who is well versed in affluent lifestyles and can provide you with a risk assessment and audit of your current coverage. 

Time to Upgrade Your Insurance Coverage

Recognizing when you have outgrown your mass market insurance coverage is an important step toward safeguarding the lifestyle you’ve worked so hard to establish. 

While mass market insurance works well for some, it’s not a one-size-fits-all solution. As your circumstances change and your life progresses, it’s crucial to regularly reevaluate your insurance coverage to make sure that you’re adequately protected.