If you own a luxurious home with sophisticated features, architectural significance, historic properties, and advanced facilities, a standard home insurance policy may not be sufficient to protect your property. The reason is your home is worth more, and so are its repair or replacement expenses. This is where a high-value home insurance policy can help.
What Is High-Value Home Insurance, and What Does It Cover?
High-value homeowners insurance protects luxury and high-risk homes, condos, and apartments. It offers various coverages, including:
Unlike standard home insurance, high-value insurance provides higher liability coverage to protect you against third-party injuries and property damage caused on and around your premises.
Theft of Identity
It covers identity thefts, including fraudsters using your identity to steal your assets and related losses and lawsuits.
Extra Living Expenses
It pays for extra living expenses (accommodation, food, and transportation expenses) if your home is being repaired after a covered loss.
Home Inspections at No Cost
It covers costs associated with your home inspections. Many insurance providers offer this as part of high-value home insurance to ensure the property is covered at the correct level.
Pair or Set Conditions
It covers a single high-value item (one item) in a pair or set that is damaged by a covered peril.
Sewer and Pipe Backup Coverage
It covers drainage backups and issues resulting from sewers and sump pumps.
If a covered peril damages only one portion of your home, such as damage to half of a kitchen floor’s tiles, high-value insurance will pay for replacing the damaged portion with matching materials. Sometimes, it will replace the undamaged portion too if the replacement materials cannot be matched with the originals.
Employment Practices Liability
It is recommended for homeowners having in-home employees to stay covered against allegations of wrongful termination and discrimination.
How Much Coverage Is Required to Insure My High-Value Home?
It depends on whether you buy actual cash value or replacement cost coverage. Mostly, replacement cost coverage is recommended for high-value homeowners, because it replaces your home and assets at their full cost. However, actual cash value coverage pays for the replacement cost deducting depreciation.
Though it comes with high premiums, replacement cost coverage provides extensive protection for your home in the event of a loss. If required, you can buy extended replacement cost coverage at an additional cost. Extended replacement coverage will replace your home and belongings up to a certain percentage beyond their value. It also helps to combat increasing labor and materials costs, making replacement a costly proposal.
How to Further Protect My High-Value Home and Assets
In addition to high-value home insurance, luxury homeowners can buy an umbrella policy or personal excess liability policy to comprehensively protect their property. An umbrella policy kicks in if the compensation claims exceed the coverage limits of your primary liability policy.
Insurance for a Second Home
Owning a second or vacation home requires a separate home insurance policy, which usually costs more than your primary home insurance. The reason is that your additional property will likely be unoccupied for a long period, increasing the possibilities of theft and vandalism.
Cover Your High-Value Homes with Burton A. Harris Insurance
If you are looking for comprehensive insurance to cover your luxury and high-risk homes, contact us today at Burton A. Harris Insurance Agency. We will help you find customized coverage based on your personal needs.