All You Need to Know about High-Value Home Insurance

If you own a high-end residential property, then you might need specialized insurance to protect it against perils like fire, storm, or theft of personal belongings. This high-value home insurance guide will walk you through how this special policy works, what it covers, and how much it might cost you.

Introduction to High-Value Home Insurance

High-value home insurance is a specialized policy for high-end properties usually valued at $750,000 or more. It’s one of the most comprehensive insurance products for residential properties with unique, high-end architectural or interior design features. You may also want high-value insurance if you own a heritage home.

How High-Value Home Insurance Works

Having this policy gives you the protection of a standard homeowners insurance package but with higher limits. It also provides extended coverage for the unique design features of your high-end property and expensive belongings. If you own a high-value home but keep a standard policy, you will run the risk of having to pay out of pocket for any replacement cost above the home’s insured value.

High-value home insurance can guarantee you full replacement cost coverage. One of the benefits exclusive to this type of policy is coverage for features and materials that are difficult to replace. Thus, it could pay to fully restore your high-end property even if the restoration cost exceeded the coverage limit.

What’s Covered under High-Value Home Insurance?

The policy may offer higher limits or extended coverage for the following.

  • It will cover the full cost of reconstructing your home even if it exceeds the coverage limit if you choose the guaranteed replacement cost option. However, an extended replacement cost plan covers only a portion of any restoration expenses above the coverage limit.
  • It offers higher coverage limits for valuables like jewelry, cash, or home-based business equipment. Also, your expensive items are insured at their replacement cost.
  • When it comes to liability, high-value coverage typically offers higher limits for personal liability, medical bills incurred by third parties, and loss assessments.
  • It offers higher coverage limits for additional living expenses incurred, such as hotel accommodation, while your home restoration process is underway.

When to Choose High-Value Home Insurance

High-end homeowners policies are designed for properties with above-average rebuilding costs or possessions with a high replacement value. Consider taking out such a policy if your home:

  • Is valued at $750,000 or more.
  • Is a heritage property or has older construction features not available with common construction techniques.
  • Sports rare architectural elements or uses hard-to-replace construction materials.
  • Hosts priceless or high-end valuables like collectibles, antique fine art, wine, or jewelry.
  • Has expensive electronic appliances, fixtures, or interior decorations that you cannot buy at traditional stores.
  • Has unique, high-end interior and exterior design elements like luxurious outdoor living spaces, unique landscaping, and pools.

How Much Does High-Value Home Insurance Cost?

High-value home insurance plans generally cost more than their standard counterparts for two main reasons. Firstly, they provide higher coverage limits. Secondly, they are top-of-the-line, highly customized insurance products. Consequently, if standard home insurance policies cost about $1,211 per year on average, expect high-end property coverage to cost more than that.

Here are tips for reducing your high-value home insurance premiums:

  • Shop around and request multiple quotes to get the best rate for the coverage you need.
  • Choose a higher deductible (the amount you pay out of pocket before your insurance is activated) to lower your monthly premiums.
  • Find out if your insurer will lower costs if you bundle your home insurance and car insurance. You could save up to 15% on premiums.
  • Shop for discounts. Depending on your insurance company, you might qualify for a high-value home insurance discount if you’re retired or a member/employee of a particular organization.

Understanding how high-value home insurance works is an important step towards selecting adequate coverage for your high-end property and valuables. If you need professional assistance with this type of policy, contact the experts at Burton A. Harris Insurance Agency in California today. We’re here to help clarify any crucial coverage-related issues you may have.