At IEQ Capital, continuous learning is fundamental to how we deliver value. IEQ Elevate, our internal development platform, is designed to deepen expertise, support long-term growth, and enhance the client experience. As a predominantly employee-owned firm, we believe that when team members think like owners—through education, shared ownership, and a values-driven culture—clients can benefit most.

Our latest session, hosted by Christy Spilsted, Senior Director of the IEQ Capital Family Office, focused on the growing complexity of the insurance landscape. The goal of the session was to equip our team with the knowledge needed to confidently guide clients through insurance-related questions, risk planning, and coverage considerations in today’s evolving market.

Insurance Volatility and Market Shifts

The insurance market has experienced heightened volatility in recent years. According to the National Oceanic and Atmospheric Administration (NOAA), the U.S. saw 28 separate billion-dollar weather and climate disasters in 2023 alone—a record high—with total damages exceeding $92 billion.¹ These events are prompting insurers to reassess risk on a per-property basis rather than by region, driving up premiums and narrowing underwriting criteria.

This shift is especially relevant for high-net-worth families, as carriers pull back in regions with frequent natural disasters or regulatory constraints. In some cases, insurers are exiting entire states or limiting new policies altogether.

Rising construction costs are compounding these challenges. McKinsey & Company reports that higher material and labor costs have led to increased claims severity across the industry, putting further pressure on insurers to adjust pricing and coverage.²

Coverage Strategies for Complex Profiles

As the risk environment evolves, affluent families must take a holistic approach to insurance. Key considerations include:

  • Dwelling and Extended Replacement Coverage: High-value homes require policies that reflect current rebuild costs. Extended replacement coverage—typically 150% to 200% of a home's insured value—is increasingly necessary to close the gap between insured and actual replacement costs.
  • Other Structures and Personal Property: Pools, detached garages, and valuables such as art, jewelry, and collectibles may fall outside standard limits and require separate scheduling or specialty policies.
  • Liability and Umbrella Insurance: To safeguard against claims stemming from property incidents or personal activities, umbrella coverage adds a critical layer of protection. The Insurance Information Institute recommends starting at $1 million in umbrella coverage and increasing limits based on net worth and exposure.³

Underwriting Trends and Risk Factors

Modern underwriting extends beyond physical risk. Carriers are factoring in lifestyle and behavioral data when pricing policies and evaluating eligibility. Elements such as credit score, claims history, social media presence, and the existence of features like pools or diving boards may influence premiums or lead to declined coverage.

Multiple claims—especially involving water damage, dog bites, or liability suits—can flag a household as high-risk. The Insurance Information Institute confirms that frequent claims can significantly limit options for future coverage.⁴

In parallel, more insurers are requiring or incentivizing preventive measures such as water leak detection systems, seismic gas shut-offs, and central alarm systems.

Specialized and Regional Coverage Needs

Standard homeowners insurance policies often exclude certain catastrophic risks. For families with homes in vulnerable regions, standalone policies for flood, earthquake, and wind coverage may be necessary. FEMA estimates that just one inch of floodwater can cause up to $25,000 in damage, underscoring the importance of evaluating location-specific exposure.⁵

Additional considerations include:

  • Course of Construction: During major, and some minor, remodels or new builds, a course-of-construction policy is necessary in place of traditional homeowners coverage to account for construction-related risks.
  • Household Staffing: Workers’ compensation insurance is required in many states when employing domestic staff. This protects both the employee and the employer from liability.

Best Practices for Insurance Planning

A comprehensive insurance review should include not only coverage adequacy but also structural and administrative considerations. Best practices include:

  • Aligning policyholder names with property titles to avoid claim disputes.
  • Consolidating renewal dates to streamline management.
  • Setting up recurring payments to prevent lapses in coverage.
  • Working with experienced insurance professionals who understand the nuances of high-net-worth risk planning.

As the insurance landscape grows more dynamic, proactive planning is essential. At IEQ Capital, we view insurance not simply as a product, but as an integral part of holistic wealth management. Sessions like this aims to ensure our team is well-prepared to guide clients through coverage decisions with clarity, precision, and confidence.

  1. NOAA National Centers for Environmental Information (NCEI), U.S. Billion-Dollar Weather and Climate Disasters, 2023.
  2. McKinsey & Company, “The future of US property and casualty insurance,” 2023.
  3. Insurance Information Institute, “Do I Need an Umbrella Insurance Policy?"
  4. Insurance Information Institute, “Homeowners Insurance: Understanding the Claims Process.”
  5. FEMA, “The Cost of Flooding,” https://www.floodsmart.gov/cost-flooding.

This material is as of the date indicated, not complete, and subject to change. Additional information is available upon request.  No representation is made with respect to the accuracy, completeness, or timeliness of information and IEQ assumes no obligation to update or revise such information. The information set forth herein has been developed internally and/or obtained or derived from sources believed by IEQ Capital, LLC (“IEQ Capital”) to be reliable. However, IEQ Capital does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does IEQ Capital recommend that the attached information serve as the basis of any investment decision. This document has been provided to you solely for information purposes and does not constitute an offer or solicitation of an offer, or any advice or recommendation, to purchase any securities or other financial instruments, and may not be construed as such.  It is not intended to be, nor should it be construed or used as, investment, tax, accounting, legal or financial advice. IEQ provides no assurance or guarantee that any investment will be successful or that any returns will be achieved. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.