While he watched the rain fall steadily from inside his Florida home this summer, Curt Dyer wasn’t about to let the water building up in his driveway change his mind. Despite the frequent floods he experiences in his garage, the 30-year Miami Beach resident isn’t going anywhere.

“It’s paradise living here,” said the Dyer, who figures the $250,000 in renovation costs he spends to make his high value home more resilient to frequent flooding is well worth the investment.

Homeowners like Dwyer have grown accustomed to the risks involved with high-net-worth living near the water. For the most part, they have the resources to make their properties resilient to severe storms by purchasing the flood coverages and high-net-worth insurance needed to mitigate potentially costly repairs should severe weather strike.

“Affluent homeowners who live in hurricane-prone areas will typically opt for high-net-worth insurance to not only cover losses from damage to their homes, but also their valuable possession within the dwelling,” said Charlie Graham, head of High Net Worth coverages at Orchid Insurance. “There are marked differences in high-net-worth insurance and standard homeowner policies.”

Graham said affluent property owners are better served by high-net-worth carriers that fill in coverage gaps left by standard-market insurance policies to protect the valuable assets and multiple risks that stem from their lifestyle, occupation, or residence.

“A knowledgeable agent or broker will address these exclusive lifestyles and their distinctive coverage challenges, discover all the inherent risks of an affluent individual, and offer a high-net-worth insurance policy to protect against their perils,” said Graham. “Multimillion-dollar homes in many instances will house far more expensive possessions than what the dwelling is worth. The trick is to have a resilient high-net-worth insurance policy in place to cover both the home and those valuable exposures, such as wine collections or fine art, in the event of a weather-related catastrophe, like a hurricane or flood.”

High Water

Flooding is the most common and costly natural disaster in the United States, according to the Federal Emergency Management Agency. Internal water damage is a frequent cause of loss for wealthy homeowners. Just 1 inch of water from a flood can cause $25,000 of damage to a home. The potential for water damage comes with the turf for high-net-worth individuals who chose to call coastal living home.

Graham said high net worth individuals who accept the inherent risks of living near the water should take precautions by adopting resiliency features to head off potential damage. An engineer might suggest structural changes to a home, like raising the driveway 3 feet with a pitch to allow water to flow away from the home and into the street.

“Any plan to reduces losses should begin with an assessment of risks and coverage recommendations from a high-net-worth insurer,” said Graham. “An agent who proactively takes measures to identify hidden exposures can prevent against undervaluation of assets and introduce new types of coverages that are not only about price, but more about service and managing risk.”

Orchid Insurance accesses the industry’s leading providers of affluent personal lines insurance including Chubb, AIG, Vault, and National General Premier to streamline your operations and underwrite the sought-after coverages that your client needs. Make no mistake about it: Orchid Insurance is the First Choice for your high-net-worth solutions.