High-value home insurance is designed for homeowners of luxury properties. It is more comprehensive and has higher coverage limits, ensuring that items in the property such as expensive decor and furniture are insured.
What qualifies for high-value insurance
A property is considered high-value if it is worth at least $750,000. Such properties can include mansions, modern high-tech homes, and heritage homes. Other criteria that can qualify for high-value insurance are structural features. If your home uses materials that are hard to replace, or if it has unique architectural features, you might want to consider taking out a high-value insurance policy. The same applies if you have an art collection, jewelry, high-end fixtures, and rarities.
What sets it apart
High-value home insurance policies provide the same coverage as a standard policy, but a high-value home insurance policy has much higher limits and extra coverage options. High-value home insurance policies can also go beyond what standard insurance offers, such as but not limited to: increased coverage limits for replacing trees and shrubbery, coverage for sewer backup, increased coverage for removing fallen trees, and higher medical payment limits.
Imagine two identical houses on a street, one with a standard insurance policy and one with a high-value insurance policy with a replacement cost coverage. If a hurricane or fire hits both houses leading to damages of $700,000 for each house, the owner of the house with a standard insurance will end up shelling out money to cover the full cost of repairs. Meanwhile, the owner of the house with high-value insurance will have no out-of-pocket expenses because high-value insurance covers the full cost.
Should you need to move out of your house while it is being repaired, a high-value insurance policy has higher limits when it comes to paying for your hotel accommodation, meals, or laundry.
Replacement cost coverage
A policy with replacement cost coverage allows you to replace your home and its contents at full value without factoring in depreciation. This can either be extended or guaranteed. A policy with extended replacement cost coverage allows you to replace your property to a certain amount beyond its value. Meanwhile, a guaranteed replacement cost coverage will cover the full cost of rebuilding, regardless of how much it exceeds the coverage limit. The latter is the more attractive option given the rising cost of labor and materials.
Liability coverage
This feature affords homeowners protection not just against damages but also injuries occurring inside and outside the home. For example, the insurance will pay the medical bills of a guest who trips and falls in your home. This coverage has higher limits for medical payments, loss assessments, and personal liability. It also covers libel and slander. High-value home insurance policies provide excess liability coverage, allowing you to safeguard your assets.
Contents coverage
High-value insurance policies typically insure your prized possessions at the replacement cost, unlike standard policies in which the payout is typically less than the full value of the item. This coverage is especially useful for homeowners with valuable jewelry, money, antiques, and art. High-value insurance offers higher coverage for these items, from both damage and theft.
Coverage of extreme cases
Most standard insurance policies don’t include flood insurance. However, this may be provided by a high-value insurance policy. Even extreme circumstances can be covered, such as kidnapping and ransom situations, extortion, and identity theft.
Additional benefits
High-value insurance policies also cover sump pumps and backed-up sewers should they result in flooding and water damage to your home. You’ll enjoy free home inspections and get reimbursed for repairing a partially damaged portion of your home (standard policies don’t cover partial loss). You can also be protected against lawsuits should in-home employees like domestic workers and personal assistants sue you for wrongful termination and the like. Double-check you’re protected from lawsuits brought by employees.
Obtaining a high-value insurance policy
Because these insurance policies cost more than the standard ones, it helps to get multiple quotes from several trusted insurers so you can get the best rates. If you bundle your home insurance with your auto insurance, you can save up to 15% on premiums. Choose a policy with high deductibles for fewer out-of-pocket expenses when you file a claim. Some insurance companies also offer discounts and special rates for certain groups such as retirees or members of certain organizations.
The Telchin Group, LLC is the #1 broker serving top-tier clients in prestigious Florida communities. If you’re looking for luxury homes in Palm Beach Gardens or West Palm Beach, call 561.301.0249 or send an email here.
