Simply due to their resources, High Net Worth (HNW) insureds are impacted by a cornucopia of environmental exposures. One example, the Renovation, Repair and Painting (RRP) rule impacts HNW insureds that own property (homes, commercial buildings…) built prior to 1978. Lead based paint was banned in 1978. The RRP rule is designed to minimize the risk to lead based paint during renovations.
You want to make sure that HNW insureds that own pre-1978 property only work with RRP trained contractors or they can be opening themselves up to environmental liabilities.
As the article below points out, the EPA reached agreement with Chip & Joanna Gaines of the “Fixer Upper” show. The article highlights how Chip Gaines was caught by the EPA for doing home renovations without adequate lead paint protections as aired on the show. Magnolia Waco Properties, LLC owned by Chip & Joanna Gaines have agreed to spend $160,000 to abate lead-based paint hazards in those homes occupants are at the highest risk of exposures to dust from lead-based paint. They also agreed to a civil penalty of $40,000.
The key point is to coach up your HNW insureds that own pre-1978 property to only use RRP trained contractors for renovations that can impact lead-based paint.
Sears recently paid a $400,000 fine for using contractors that were not RRP trained.
Another thing to keep in mind is the reputational risk created by environmental liabilities. As the link below states, “Through this settlement, Magnolia is putting in place safeguards to ensure the safety of its renovation work and making meaningful contributions toward the protection of children and vulnerable communities from exposure to lead-based paint.” Not good PR for your HNW insureds.
Environmental Risk Managers HNW Pollution Insurance program protects your insureds properties far beyond just mold coverage offered in many HNW property policies. Environmental exposures such as asbestos, storm water runoff, vapor intrusion, leaking storage tanks used for back up power generators, leaks from Hydraulic tanks used for elevators, pollution form neighboring property contaminating HNW insureds property, sick building syndrome, legionnaires, pool chemicals, fertilizers, herbicides….