Owning a luxury home is a dream come true for many people, but it comes with a completely different set of concerns that do not apply to standard homes. Therefore, a standard homeowners insurance policy might not offer the best degree of protection. High value home insurance takes the specific needs of affluent customers into consideration to ensure the broadest coverage possible.
Who Needs High Value Home Insurance?
If the value of your home exceeds $750,000, you will most likely be eligible for high value home insurance. Although it is not necessarily required, it can prove to be a far wiser choice than a standard policy as the caps in standard policies for valuables such as jewelry might not be enough to cover the value of your belongings.
When determining if you need high value home insurance, you need to think beyond the actual price of your home and look at special features. Homes that have architectural significance, unique features, rare materials or historic properties might also choose this type of policy; luxury apartments and condos can also be designated as high value. The designation is based on the cost of replacing the home should it be completely destroyed, including the exterior structure, flooring, built-in appliances and cabinetry.
High Value Home Insurance Coverage
The biggest reason many people seek high value home insurance are the expanded coverage limits included in this type of policy. In addition, there might be staff or frequent guests in luxury properties, which can raise liability exposure.
A bigger, more valuable home generally has more high-value items than a standard one, and these policies will offer appropriate risk and replacement cost coverage.
Replacement cost coverage will replace your home and belongings using their full value rather than actual cash value, which uses depreciation. This provides more comprehensive coverage.
Wealthier homeowners tend to have higher personal liability needs, and this will typically cover libel, slander, medical payments and credit cards.
When you own a high-value home, it may make you an attractive target for identity theft. That is why many of these policies include coverage for losses that may arise if someone tries to assume your identity and steal your assets. This part of your insurance can also cover the legal fees involved in fixing the damage and may also reimburse financial losses suffered as a result of being victimized.
Large credits are available when you get all of your insurance – home, auto, scheduled properties and umbrella – with a single carrier.
A customized high value homeowners insurance policy may offer coverage for additional properties you might have, such as secondary homes and vacation properties across multiple locations.
These policies will typically have guaranteed dwelling replacement cost coverage, along with unlimited building code coverage and an “all risk” coverage.
High value home insurance policies often offer additional coverage that standard policies will not include, such as high sub-limits for valuables such as antiques, wine collections, silverware, fine art and jewelry.
Reach Out To The Specialty Insurance Brokerage
If you want to protect your home and all the valuable items it contains, reach out to the specialty insurance brokerage at Merchant Family Agency to determine the right policy for your needs. Please give us a call at 407.707.6418 or request a quote online today.