When you have the resources to rebuild a $30+ million home without a significant impact to your financial bottom line, what should you do regarding insurance?
Natural disasters only seem to worsen year after year. According to NOAA National Centers for Environmental Information, as of July 9, 2021, there have been 8 weather/climate events with losses exceeding $1Billion Dollars in the United States. And over the last 5 years there have been an average of 16.2 $1Billion dollar events per year. These trends amount to an uptick in the severity and prevalence of losses, which is why it is more important than ever before to make a holistic assessment of coverage options when building the risk management architecture for your assets and lifestyle. Often there is very little conversation around the concepts of self-insurance, excess and surplus lines solutions and captives. It is important to engage with your broker to assess the strengths and weaknesses of all available options before deciding which solution or combination of solutions best align with your means and risk appetite