Risk Management Strategies for High-Net-Worth Households
- Monica Romstadt, CPRIA
- May 27
- 2 min read
Updated: 2 days ago
High-net-worth households face unique risks that require tailored strategies for protection. From safeguarding luxury homes to mitigating liability and cybersecurity threats, a comprehensive risk management approach is essential. Here are key strategies for protecting your wealth and lifestyle:
1. Asset Inventory
Video your home. One of the easiest ways to inventory your belongings is to walk through your home with your camera on video. Talk about the items in view, open cupboard doors and zoom in. Save the video to a Cloud account or send it to us for safekeeping.
Document Everything. Catalog luxury properties, fine art, jewelry, and collectibles.
Appraisals and Updates. Regularly appraise items to ensure accurate valuation.
2. Tailored Insurance Solutions
Our Private Client Group offers premier carriers, custom solutions, elevated claims service, and concierge service PCG is designed for families whose assets require a higher level of risk management expertise.
3. Enhanced Property Protection
Security Measures. Install advanced security systems with central station reporting.
Disaster Preparedness. Storm-proof and fireproof your property. Check online for the latest fire-resistant tools and sprays.
Unoccupied Risks. If a rental or secondary home is unoccupied for a long time, hire a caretaker or remote monitoring service to check on the property.
4. Cybersecurity Defense
Limit Personal Info Shared Online. Be mindful of what your family is posting online. Public information can be used in phishing scams or kidnapping threats.
Personal Data Protection. Safeguard sensitive information by using strong passwords, implementing Multi-Factor Authentication (MFA), and a Virtual Private Network (VPN).
5. Liability & Property Risk Mitigation
Event Risk Management. There are many ways to minimize risk while entertaining at your property. Consider these ideas:
Hiring a valet service to park vehicles.
Hiring a professional bartender
Locking and limiting access to private areas
Fencing off-limit areas
Removing expensive artwork and collectibles from open areas.
Domestic Employee Coverage. Secure workers’ compensation for staff.
6. Travel and Lifestyle Risk Management
Travel Insurance: Opt for comprehensive, customizable coverage. Standard travel insurance may not offer the limits or flexibility that you need.
International Coverage: If you own a vacation home or estate abroad, talk with us about the proper insurance for your location.
Most of our high-net-worth clients meet with us quarterly to review changes in their assets and lifestyle. These regular conversations give us the opportunity to talk about proactive risk management strategies to ensure the long-term protection of your wealth and legacy.
