What Is High Net Worth Insurance, And Who Needs It?

Standard home insurance policies are built for the average household. For people with higher-value properties, significant collections, multiple homes, or luxury vehicles, that approach falls short in important ways. This is where standard cover no longer works and where specialist high net worth insurance becomes the right solution.

In this guide, we explain what specialist cover actually is, what it includes, who needs it, and how to tell whether your current policy is leaving your assets exposed. 

Looking for specialist cover? Call our team on 020 7354 3881 for tailored advice today.

What Is High Net Worth Insurance?  

High net worth insurance cover protects individuals and families whose assets, property, and lifestyle requirements exceed what standard policies can adequately handle. Rather than being an off-the-shelf product, it is a bespoke arrangement, tailored to the specific combination of assets each client holds.

At its core, it typically encompasses high net worth home insurance, contents and valuables cover, specialist motor insurance, and personal liability protection, all brought together under a single policy administered by a specialist insurance broker. 

How Specialist HNW Cover Differs from Standard Policies

The differences between HNW insurance and standard policies go beyond simply higher sums insured. They relate to the structure of the policy, the way claims are handled, and the expertise of the people managing your account.

Feature	Standard Insurance	High Net Worth Insurance
Buildings cover	Fixed limits, often inadequate for large properties	Tailored to true reinstatement value, typically from £750k+
Contents cover	Blanket limit, inner caps on valuables	New-for-old, from £100k+, individual items specified
Valuables	Sub-limits per item, often £1,500-£2,500	Single article limits up to £50,000+
Claims handling	Call centre, standard process	Dedicated claims manager, award-winning service
Additional assets	Not covered	Motor, travel, second homes, yacht can be added

 

HNW insurers assign a dedicated loss adjuster to each claim rather than routing clients through a call centre. For a client dealing with significant damage to a period property or the theft of a valuable art collection, that personal service can be the difference between a straightforward settlement and a prolonged dispute.

What Does High Net Worth Insurance Cover?

A high net worth insurance broker such as Ellis David can cover a wide range of assets and risks. The exact scope depends on your individual circumstances, but the following are typically included:

High Value Buildings Insurance

For high net worth home insurance policies, buildings cover is assessed on true reinstatement value rather than market value, and typically applies where the full reinstatement cost exceeds £750,000. The cover includes all permanent structures: outbuildings, driveways, swimming pools, tennis courts, and gates.

Contents and Personal Possessions

Contents covered under an HNW policy typically starts at £100,000 and is assessed on a new-for-old basis. Items such as shoes, handbags, gardening equipment, and sports equipment are all included within the core contents definition. Jewellery, watches, fine art, and antiques are handled separately under a valuables section.

Valuables: Jewellery, Art, Antiques, and Collections

This is one of the most important areas of difference. Standard policies apply strict sub-limits per item, often as low as £1,500 to £2,500 for unspecified valuables. HNW policies allow single article limits of up to £50,000 or more without the need to individually specify every item, provided the total insured value is declared. At Ellis David, there is no requirement to specify individual jewellery items under £10,000 or fine art and antique items under £10,000, with increased single article limits of up to £50,000 available. For more significant collections, individual specification and professional valuation is recommended.

One important consideration: valuations should be reviewed every three to five years to account for fluctuations in market value. Antique and fine art markets in particular can shift considerably over time, and an outdated valuation may leave you with insufficient cover when it matters most.

High Value Motor Insurance

Vehicles valued over £50,000, fleets of luxury or performance cars, and specialist vehicles including classics and electric supercars require more than standard comprehensive motor cover. High value motor insurance from Ellis David can be arranged with agreed values (avoiding market value disputes at total loss), and can cover multiple vehicles under a single fleet policy. Cover for track days, professional use, and vehicles kept at multiple locations is also available.

Second Homes and International Properties

If you own more than one property, whether a country house, a ski chalet, or a holiday home abroad, each property carries its own risk profile. HNW policies can be extended to cover second and subsequent homes under a single arrangement, simplifying administration and ensuring consistent levels of cover across all your properties.

Home Renovation and Works Cover

Standard household policies frequently become void during renovation work, particularly for structural projects or where the property is unoccupied. If you are undertaking significant works, a specialist renovation and works insurance policy is often needed. This covers the existing structure, the value of contract works, and associated liabilities, and can be arranged in joint names if required by the contractor.

Personal Liability

HNW policies can include liability protection as standard, covering you, your family, and any domestic employees for legal liability arising from the ownership of the property or the actions of household members. This can extend to employer’s liability for domestic staff, which is a legal requirement in the UK.

Who Needs High Net Worth Insurance?

A common misconception is that HNW insurance is only relevant to the very wealthy. In practice, the thresholds for needing specialist cover are lower than many people assume. 

You are likely to benefit from a high net worth insurance policy if any of the following apply:

• Your property has a reinstatement cost of £750,000 or more (this is the rebuild cost, not the market value, and is often higher than people expect)
• Your contents, including furniture, clothing, and household items, exceed £100,000 in total replacement value
• You own jewellery, watches, fine art, antiques, or collections that include individual items or collections worth more than £5,000 to £10,000
• You own one or more vehicles valued above £50,000, or a fleet of cars within a household
• You own a second home, holiday property, or investment property
• You employ domestic staff, such as a housekeeper, gardener, or nanny
• You are planning or undertaking significant renovation works
• You require the reassurance of a personalised, dedicated broker relationship rather than an automated online process

This is not an exhaustive list. Our team works with each client to assess their specific situation, ensuring cover is in place where it is needed and that they are not paying for cover they do not require.

So, who exactly needs this level of cover?

Anyone whose home, contents, vehicles, or other personal assets would be inadequately covered by a standard household or motor policy. In practical terms, this typically means homeowners with properties worth over £750,000 to reinstate, contents exceeding £100,000, or personal valuables including jewellery, art, and collections where individual items are worth more than a few thousand pounds. 

It also applies to households with high-value vehicles, second homes, or domestic employees. If you are unsure, speaking to a specialist private client broker such as Ellis David is the most effective way to assess whether your current cover is adequate.

The Underinsurance Problem

Underinsurance is one of the most significant and persistent risks facing HNW households in the UK. Research reported in the Financial Times has estimated that as many as 75 percent of HNW homes in the UK are underinsured. This is not a small shortfall: in some cases the gap between the sum insured and the true reinstatement cost runs to hundreds of thousands of pounds.

There are several reasons why this happens. Property reinstatement costs have risen sharply in recent years due to inflation in construction materials, labour costs, and professional fees. Many policyholders set their sum insured once and never review it. Others use the market value of their property as a guide, when in fact reinstatement cost can be significantly higher, particularly for period properties, listed buildings, or homes with extensive outbuildings and grounds.

Valuables present a similar problem. Fine art, antiques, jewellery, and watches all fluctuate in value over time, and an item insured at its value five years ago may be worth considerably more today. Ellis David advises that valuations on such items be reviewed every three to five years, or more frequently for items in fast-moving markets such as jewellery and contemporary art.

When a claim is made and the insurer determines that the sum insured was inadequate, they may apply what is known as the ‘average condition’. This is a proportional reduction in the settlement amount, reflecting the fact that the insurer was not collecting the correct premium. The policyholder bears the shortfall. For significant claims, this can represent a substantial financial loss.

Both new and existing clients of Ellis David whose policies are due for renewal are eligible to receive a complimentary buildings survey to check that their property is adequately insured. This is a straightforward step that can prevent the kind of costly shortfall that the average condition clause produces. To find out more, visit our private client insurance guide.

How to Choose the Right Insurance Broker for Private Clients 

The broker you choose matters as much as the policy itself. A specialist private client broker does more than find you a price. They assess the full picture of your assets, identify potential gaps in cover, negotiate terms with underwriters on your behalf, and manage the claims process when things go wrong. The relationship should be ongoing, not transactional. 

When assessing a broker, look for the following:

• Specialist expertise: The broker should have dedicated staff with specific HNW experience, not generalists who also happen to offer HNW products. At Ellis David, the private client team includes professionals with backgrounds at specialist HNW insurers including Aviva Distinct and Chubb.
• Insurer panel: A broader panel means access to more competitive terms and better policy wording. Ellis David works with over 100 insurers and MGAs, offering access to more than 1,000 products.
• Claims support: Find out how claims are managed before you buy. A good HNW broker will have a clear process for supporting clients through claims, including direct access to the team rather than an automated queue.
• Valuation guidance: Specialist brokers maintain networks of trusted valuers, surveyors, and risk management professionals. Ellis David has cultivated relationships with valuers, antiques experts, security specialists, and surveyors to support clients in maintaining accurate sums insured.

How Ellis David Can Help

Ellis David is a specialist insurance broker based in London, with over 25 years of experience placing bespoke cover for private clients across the UK. Our private client team works with each individual to understand their exact circumstances, assess their exposure, and arrange the most comprehensive high net worth cover available from our panel of over 100 insurers.

We provide a personal service throughout the year, not just at renewal. Whether you have purchased a new item of jewellery, are planning a renovation, have acquired an additional vehicle, or simply want to review whether your current arrangements remain adequate, we are available to advise. 

Get in touch with us today, online or by calling 020 7354 3881.