As the population of high net worth individuals continues to rise, many are experimenting with luxury purchases such as yachts, jets, art collections, additional homes and luxury automobiles, thus adding to the value of their assets. As portfolios increase for these newly wealthy, so does the number and variety of their assets. Many invest in real estate, including international homes, and it becomes necessary to put coverage in place to protect both the property and the owner.

Unfortunately, many wealthy individuals continue to purchase insurance from standard carriers, resulting in inferior coverage and potential gaps. This may happen because their insurance advisor does not have access to luxury carriers, and has not educated them on the differences in coverage that are available.

Yet, significantly, many luxury carriers offer programs that are more inclusive or offer additional coverages through endorsements and special policies that protect your unique assets and mitigate potential risks such as on-property injuries or social media exposures. These programs may include lower deductibles and the availability of options that could save you premium dollars and increase your level of coverage. For these reasons, your insurance advisor should offer a risk-management plan designed specifically to address your needs, including access to all five luxury carriers.

Certainly, collections come in many forms, and collecting has become a popular investment with those who can afford to indulge their desires. Affluent families may acquire antique furnishings, automobiles, rare books, artwork, fine wines and jewelry.

But those families should know that fluctuations in the value of art, wine and other collectibles can occur, and when they do, could potentially leave high net worth individuals open to substantial losses. That is why insurance is important. And because the cost of insurance may vary, your insurance advisor should inform you about the differences between insuring collectibles under a home policy and insuring them under a separate endorsement, by “scheduling” the collectibles.

This distinction is important because the savings in premium costs may be substantial when you schedule your collections.