PRIVATE CLIENT
The Case for Reassessing Your Personal Insurance Strategy
If your home, assets, and lifestyle are worth millions, standard insurance isn’t enough — here’s why private client carriers are built for you.
What is Private Client Insurance?
Most people assume that if they have insurance, they’re protected. And on the surface, that might seem true: your policy is active, premiums are paid, and your coverage looks familiar. But as your life evolves, your coverage needs to evolve with it.
This is especially true for families with home property values above $1.5 million, often referred to as High Net Worth (HNW) families or individuals. In these cases, the difference between being insured and being well-insured often comes down to the fine print. Standard policies may not account for higher-value homes, custom features, or growing collections, leaving gaps you didn’t even know were there.
The Hidden Stat: 70% of HNW Individuals are with Standard Carriers
More than 70% of high-net-worth individuals are insured by standard, mass-market carriers. This number has hovered between 60%–70% for years.
Why does it matter? These carriers weren’t built to handle the unique complexities of high-value homes and vehicles, valuable collections, or multi-generational ownership structures.
In other words, millions of HNW individuals and families are quietly underinsured, and they don’t even know it.
What Makes Private Client Insurance Different?
Private client carriers are purpose-built for households with more to protect. If your home is valued at $1.5M+, or you own multiple vehicles, collections, or legal entities, the difference isn’t just in coverage limits. It’s in the entire experience.
Here’s how private client coverage stacks up against standard insurance:
Home and Auto Deserve a Closer Look
Let’s say your home is beautifully custom-built, with tailored finishes and high-end furnishings. A standard carrier might only reimburse you for depreciated value or offer limited dwelling coverage that doesn't account for rising construction costs.
Now add your vehicle or vehicle collection. Standard policies often calculate payouts based on Actual Cash Value, minus depreciation. A private client policy offers Agreed Value, so if your car is totaled, you're made whole, no questions asked.
Claims That Illustrate the Difference
- $2.5M home, partial fire loss: Standard carrier offered $400K based on depreciation. Private client policy provided full restoration under Guaranteed Replacement Cost.
- Flooded wine cellar: A $500K wine collection destroyed by a burst pipe. Standard policy capped coverage at $5,000, but the private client policy paid the full amount because it was scheduled.
Don’t Let Loyalty Be a Liability
If your assets, lifestyle, and exposures have evolved over time but your insurance hasn’t, you may be outgrowing your policy without realizing it. And while your current carrier may have been a perfect fit a decade ago, that doesn’t mean it still is. It’s entirely possible the carrier you started with is not the carrier for you today.
Why It Matters Now
The HNW market is growing and evolving fast.
The U.S. high-net-worth personal lines market is now worth ~$50B, accounting for nearly 10% of all U.S. personal lines. Demand is being driven by rising asset values, luxury home purchases, and increasingly complex risk profiles.
Catastrophes are driving volatility.
In 2024, the four largest HNW states (California, Florida, Texas, and New York) were responsible for 60% of all U.S. catastrophe losses. High-value homes in wildfire, hurricane, and storm-prone zones face elevated risk and scrutiny.
Geography impacts insurability.
Capacity is increasingly difficult to secure in high-risk areas. Homes in CO, CA, FL, TX, and those under renovation or construction are especially impacted by regulatory and underwriting constraints.
The shift to E&S is accelerating.
The Excess & Surplus (E&S) market is now the go-to solution for many HNW households. It offers greater flexibility in rates, terms, and risk mitigation requirements, often where admitted carriers can no longer compete.
Policy terms are getting tighter.
Expect higher deductibles, more restrictive coverage (e.g., wildfire sublimits), and mandatory loss prevention measures like fire-resistant venting and defensible perimeters.
Complimentary Review for High-Net-Worth Households
At CCIG, we specialize in custom protection for individuals with:
- Homes valued at $1.5M+
- Complex ownership structures (trusts, LLCs, FLPs)
- Valuable collections: art, jewelry, wine, cars
- Elevated liability risks
- High-performance or collectible vehicles
Your coverage should grow with you. Let’s ensure it has – reach out to our team for a complimentary review.