Not even Gerard Butler, the actor best known for his role as a Spartan in 300, could save his multimillion-dollar home as fires raged throughout Malibu. He, like many others, returned to embers still smoldering and rubble where his home once stood. In 2018, the Camp Fire in Northern California and the Woolsey Fire destroyed more than 20,000 commercial and residential structures resulting in $11.4 billion in losses and that number may continue to climb. While final numbers on the fires have not been released, they are likely among the costliest on record.
Wildfires in California are just one example of catastrophic events that are causing insurance premiums to rise. Hurricanes along the East and Gulf Coasts as well as tornadoes that bring wind and hail in the Midwest and South have resulted in insurance companies paying policyholders more than anticipated. Due to the unprecedented number of homes needing to be rebuilt, the cost to rebuild is also rising which further increases the costs for insurance companies.
So, what does the frequency and severity of weather events mean for successful individuals and families insured through high net-worth insurance companies? It depends on your specific situation, but it is safe to say that no matter where you live, insurance premiums are likely to rise. Additionally, insurance might not be available where you need it.
But don’t worry. Lockton’s Signature Client Group is a trusted adviser to successful individuals and their families who may be insured through high-net worth programs. They stay ahead of what’s happening in the market, and due to their deep relationships with insurance carriers, they are able to give their clients multiple options. They work on behalf of their clients to ensure they can get life back to normal quickly when the unexpected happens.
How do they do this? Throughout their relationship, our Associates take time to understand their clients and their assets. This puts them in best position to help their clients make informed decisions. This includes conversations about:
- Their home, auto, collections and liability exposures.
- Higher deductible options which can offer some premium relief.
- Safety features that can offer more protection for clients and can also lead to premium savings.
Unfortunately, both catastrophic weather events and market cycles are unpredictable, but having a trusted advisor gives clients peace of mind that they will be OK.
Contact your dedicated Signature Client Group Associate for assistance.
Looking to learn more about the Signature Client Group and how we help successful individuals and their families? Email email@example.com to get connected with an adviser.