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Broker Discussions on Greener, Smarter, Complex Properties

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Evolving Trends in High Net Worth Homes

Across the high net worth (HNW) market, homes are continuing to evolve. Clients are investing heavily in sustainability and wellness-led design: air and water purification systems, solar arrays and battery storage, heat pumps, home spas, smart lighting, green roofs, whole-home automation and increasingly complex electrical infrastructure. These upgrades are seen to be positive in reducing environmental impact, improving comfort and supporting long-term property value. But from a risk perspective, they also introduce new fire, water and electrical exposures that aren’t always considered. For brokers, this creates an opportunity to have more meaningful, advisory conversations with clients and to demonstrate real value beyond simply arranging the insurance cover.

A Changing Risk Profile

From an insurer’s perspective, there are a growing number of homes that are more technologically advanced and more interconnected which, if not properly managed, could potentially be more vulnerable to loss. The risk profile is changing.

Electrical and Fire Exposures

Many sustainability and wellness features concentrate power, water or heat in ways traditional properties simply didn’t. Electrification is increasing everywhere. Air source and ground source heat pumps, EV charging points, solar PV, battery energy storage systems (BESS) and smart home hubs all add significant electrical load. Periodical electrical inspections are becoming increasingly important. Fire risk must be a consideration with energy storage and alternative forms of new heating systems. Lithium-ion battery storage units, poorly installed solar PV systems or overloaded consumer units can create ignition sources. In period or listed homes, legacy wiring can introduce safety challenges with retrofitting these additional systems. Electrical risk is growing not just from increased load, but also from integration. Smart home systems link lighting, security, heating and entertainment. A fault in one area can cascade across the network. In some properties, plant rooms now resemble commercial installations more than domestic ones, yet may not always be maintained to the same standards.

Water and Wellness-Related Risks

Meanwhile, wellness installations such as steam rooms, saunas, plunge pools, hydrotherapy baths and indoor pools increase plumbing complexity and water volumes inside the building envelope. More complex and concealed pipework can mean that when a leak occurs, it might remain undetected for longer and cause more substantial and costly escape of water damage. These remain some of the most frequent and costly losses in HNW portfolios.

Increasing Severity and Emerging Detection Technology

In short, the severity potential of a single incident is higher. A small failure can escalate faster and cause more expensive damage. However, detection technology is also advancing such as the Leakbots provided as part of our proposition which are able to identify leaks early and enable repairs before that catastrophic loss happens.

How Brokers Can Add Value

Talk about installation standards. Renewable and wellness systems should be fitted by accredited specialists, with certification retained. Poor workmanship can be one of the biggest drivers of loss. Encourage preventative technology – for example, leak detection with automatic shut-off valves can significantly reduce the severity of a water leak. In higher-value homes, these measures can pay for themselves fairly quickly in avoided or mitigated losses. Review maintenance routines. Heat pumps, pools, battery systems and plant rooms require servicing. There can sometimes be an install and forget attitude, and lack of or inadequate maintenance is a common theme in larger losses. Reassess sums insured – standard index-linking may not keep pace and underinsurance continues to be prevalent in the HNW space.

Positioning Risk Management as Lifestyle Protection

Clients are investing in homes that reflect their values and wellbeing. Framing ongoing risk management as a way to protect that investment and avoid disruption to their lifestyle is may be far more effective. A discrete water leak prevention system like Leakbot, regular electrical inspections or a professional plant room inspection is simply part of protecting the home they’ve worked hard to create. As sustainability and wellness features continue to accelerate in the HNW space, the role of the broker increasingly becomes that of a trusted risk adviser. Helping clients enjoy the benefits of modern living while quietly managing the hidden exposures is where real value lies.

Did you know?

The buildings cover section of our Executive Home and Plus policies includes an Environmental Home Upgrade benefit.

This means in the event of damage by an insured cause to the buildings which also includes damage to the electrical, heating or water system, subject to our prior approval, we'll pay up to £10,000 on Executive Home and up to £50,000 on Executive Plus towards the cost of installing a solar, wind or other environmental home upgrade as part of the repairs to the electrical, heating or water system. 

To qualify for this benefit the claim value before the upgrade must be greater than £20,000 (after deduction of any applicable excess) and such a device must not already be installed at the home.