Exceptional Risk Advisors recently met with a wealthy individual in need of help. The family’s primary residence was in a prestigious but precarious Florida coastal community and their secondary home was located in Princeton, New Jersey. The family maintained a substantial Fine Art collection at both homes, two high-end automobiles and a $5,000,000 excess liability policy, all of which were underwritten by different insurance carriers and established by various brokers.

The Problem:

Upon review of the client’s assets and insurance coverage, the following key issues were uncovered and addressed:

• The Florida residence was covered by four separate policies: homeowners, flood, excess flood and windstorm. Each policy listed outdated replacement costs for the dwelling. Payment for a loss would be inconsistent for each peril.
  
• The Fine Art collection totaled several million dollars in value, but the insurance policy provided a limit of $250,000 and was further constrained by a $10,000 maximum payout per one item.The most expensive piece in the collection had a value of $450,000. This was a significant gap in coverage.
  
• Each policy had separate effective dates, making tracking renewal and payments problematic for the client.

The Result:

• We negotiated a program with our carriers to offer the family one single insurer for the Florida residence, combining home, wind and excess flood perils. This expanded coverage and replaced the Florida Windstorm pool, which has a shaky financial standing and a poor reputation for handling claims. The excess flood was placed with an admitted (domestic) carrier. Replacement cost limits were coordinated to be consistent.
  
• The Fine Art Schedule was updated to accurately reflect what the client owned, and insurance coverage was expanded to provide current market replacement cost for each individual piece.
  
• Automobile coverage was replaced to provide a net annual savings of 20% to the client.
  
• The umbrella liability was replaced with enhanced coverage offering a $10,000,000 limit to accommodate the family’s true net worth and future income.
  
• Policies were consolidated and coordinated to a common expiration date and a unified billing statement, making the tracking, annual renewal and payment process far more efficient.

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